Azernews.Az

Ulviyya Poladova

Read more

Bitcoin fell to its lowest level in nearly two years as expectations of tighter U.S. monetary policy and growing investor concerns over the future strategy of Strategy, the world's largest corporate holder of the cryptocurrency, weighed on market sentiment, AzerNEWS reports.

According to Bloomberg, Bitcoin declined 1.5% during Asian trading, dropping to $57,742 - its lowest level since September 17, 2024. The cryptocurrency later recovered part of its losses.

Markets remain under pressure following hawkish comments from officials at the U.S. Federal Reserve, reinforcing expectations that interest rates will remain elevated for longer. Higher borrowing costs have reduced investor appetite for riskier assets, including cryptocurrencies, which do not generate interest income.

Bloomberg also reported that investors withdrew more than $4 billion from spot Bitcoin exchange-traded funds (ETFs) in June, marking the largest monthly outflow since the products were launched two years ago.

Since the downturn began, Bitcoin has lost more than 50% of its value from its all-time high of over $126,000. The cryptocurrency has also fallen below its 200-day moving average for the first time in more than three years, a technical signal that many analysts view as indicative of a weakening long-term trend.

Bitcoin is the world's largest cryptocurrency and operates on a decentralized blockchain network. The system allows participants to generate, or "mine," new coins by validating transactions and creating new blocks on the blockchain.

Many investors view cryptocurrency as a digital alternative to traditional currencies and financial assets. However, digital currencies are known for their high volatility and are often influenced by broader market sentiment and economic conditions.

Image: Dado Ruvic / Reuters