Bitcoin's rally stalled in 2023 around the closely watched $30,000 level, the breach of which was hampered by the latest US cryptocurrency campaign and a more rational assessment of the Fed's policy outlook.
The largest cryptocurrency by market value fell 1.1% and was trading at $29,470 as of 11:30 am Tuesday in Singapore, after falling 3% the previous day in its worst decline since March 9.
The Securities and Exchange Commission on Monday intensified its crackdown on digital assets, saying that cryptocurrency platform Bittrex had violated the commission's rules for years. Intensified oversight of crypto-assets, and muted expectations regarding Fed rate cuts have dampened investor enthusiasm.
Recent economic data helped bet strongly on a quarter-point hike in the Fed's interest rate in May, while dampening expectations for subsequent monetary policy easing.
Tony Sycamore, market analyst at IG Australia, said that Bitcoin could drop around $27,000 if the market continues to take a cut from the 60 basis points of interest cuts expected through the end of the year that the market is now reflecting.
The digital currency has jumped 78% this year, outpacing an 8% rally in global equities, as cryptocurrency markets partially rebounded from the 2022 crash.
But bankruptcies and digital asset scandals, most notably the collapse of FTX, still haunt the sector.
