Bitcoin declines with price slipping to six-month low

Monday, 5 August 2024 15:41

By Reuters

Bitcoin and ether plunged to multi-month lows as worries over a possible US recession in the wake of soft data gripped financial markets and triggered a rush out of risky assets.

The selloff marks a stunning reversal just days after optimism fueled by Republican presidential candidate Donald Trump's speech pushed bitcoin, the world's biggest cryptocurrency, over the $70,000 (AED 257,000) mark for the first time in more than a month.

Crypto markets have gotten a boost this year after the US Securities and Exchange Commission approved exchange-traded funds to track the spot prices of bitcoin and ether.

More recently, however, the currencies have tumbled alongside other assets including global equities, as investors fear a US recession could be on the horizon, with rising geopolitical worries also weighing.

Bitcoin has lost over a third of its value since hitting a record high in March. The increasing correlation with equities has also undermined its reputation as a safe-haven asset.

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