Bitcoin Price Drops to Lowest Level in a Month

Bitcoin slipped to its lowest level in a month as an outflow of capital from digital asset investment products and the prospect of higher long-term US lending rates eroded the cryptocurrency market.

The largest digital asset at one point was down as much as 2.7% on Tuesday and was trading around US$65,300 at 10:26 am in Singapore. Smaller tokens like Ether, Solana, and Dogecoin experienced heavier losses.

According to data from CoinShares International Ltd, some US$600 million was withdrawn from digital asset products last week, the highest amount since March.

Persistent inflation has led traders to lower expectations for a Federal Reserve interest rate cut this year, posing a challenge to speculative investments such as cryptocurrencies.

Stocks and bonds have performed better than Bitcoin this quarter, reversing course from the previous three months through March, where digital assets outperformed traditional markets significantly.