Bitcoin continues to fall for the third day in a row – on May 1, it lost 4.7% to $57,055, the lowest since the end of February. Ether also suffered losses, though not as much, falling 3.6% to $2,857, also its lowest since February.
About this informs Reuters with reference to Ukrinform.
The fall of cryptocurrencies is attributed to the fact that investors are withdrawing funds from risky assets ahead of the US Federal Reserve’s interest rate decision.
This decline puts Bitcoin on the verge of a bear market, as its price is 22% below its March record of $73,803.
However, it’s important to note that despite the drop in April, Bitcoin is still 35% higher than it was in January and double what it was a year ago. This is largely due to the large investments flowing into newly created exchange-traded funds since January.
Since April 20, when the halving took place, Bitcoin has fallen by about 15%. Many investors bought bitcoins ahead of this event, which involves a change in the technology behind the cryptocurrency and is designed to reduce the rate at which new bitcoins are created.
