Bitcoin price fell to its lowest level in a month as investment outflows from digital asset products and the prospect of higher U.S. borrowing costs for a longer period weakened the cryptocurrency market.
At its lowest level, the largest digital asset fell 2.7% on Tuesday, trading at around $65,300 by 10:26 a.m. Singapore time. Smaller digital currencies such as Ethereum, Solana and Dogecoin posted bigger losses.
About $600 million was withdrawn from digital asset products last week, the most since March, data from CoinShares International Ltd. shows. Stubborn inflation has prompted traders to scale back expectations for a rate cut by the Federal Reserve this year, posing a challenge to investments in speculative assets such as cryptocurrencies.
Stocks and bonds outperformed bitcoin this quarter, a turnaround from the three months through March, when digital assets significantly outperformed traditional markets.
