Bitcoin has reached a monthly low amid a sell-off

After a boom in investor interest in digital assets that began in 2023, a large-scale sale began in the market, despite a significant influx of funds into BTC-ETFs approved at the beginning of the year in the United States.

Today, bitcoin has reached a monthly low amid an outflow of investments and expectations that the interest rate in the United States will remain high for a long time, which will negatively affect the cryptocurrency market. BTC lost 2.7% on Tuesday before partially offsetting the drop to $65,530. Other tokens such as ETH, Solana and DOGE also showed declines.

Over the past week, about $600 million was withdrawn from digital asset funds, which is the highest figure since March. High inflation has forced investors to lower expectations of a Fed rate cut this year, which creates difficulties for speculative investments like cryptocurrencies. Stocks and bonds are yielding higher returns in the current quarter.

The sell-off among digital assets is due to the growing influence of macroeconomic factors on cryptocurrencies. The decrease in risk sentiment was noticeable even among the new tokens. For example, ZK, a token from a widely publicized project based on the ETH blockchain, fell by a third after listing on Monday.