Why are Bitcoin prices falling?

April proved to be a difficult month for Bitcoin. Moreover, broader financial markets faced turmoil as well.

Traditional markets such as the Nasdaq and S&P 500 saw declines of 2% and 1.6%, respectively, after US economic reports indicated stagflation - characterized by slowing growth and accelerating inflation.

This economic backdrop has led to lower expectations for US Federal Reserve interest rate cuts, leading to a further decline in expectations for cryptocurrencies. As expected, the downtrend extended beyond Bitcoin.

This large-scale correction threatens to end a series of seven-month gains in the digital currency market.