According to Business Insider, bitcoin was down nearly 10% in April 2023, lagging behind gold and the equity market. Other cryptocurrencies, namely ether, solana, and dogecoin, also suffered heavy losses in mid-spring.
Bitcoin’s red-hot rally initiated in 2021 appears to be fizzling out. Easing demand for the token can be attributed to increased regulatory scrutiny. The collapse of two cryptocurrency banks in the United States has added fuel to the fire.
The flagship cryptocurrency has lost roughly 10% over the month. In the past five days alone, BTC has sunk by 5% to settle at $27,000.
Notably, in the first quarter of 2023, the world’s biggest cryptocurrency posted prolonged gains, driven by investor optimism about a possible interest rate cut by the Fed. As for other digital assets, ether slid by 10%, solana fell by 17%, and dogecoin slumped by 18% last month.
Thus, gold has taken first place among the most reliable and in-demand safe-haven assets. Stocks and bonds of major companies are ranked second. Over the past month, Wall Street's benchmark S&P 500 index has added 1%, while Bloomberg's Global Aggregate Bond Index has been almost unchanged.
Earlier, the Securities and Exchange Commission (SEC) and other watchdogs shut down major crypto exchanges, including Binance and Kraken, due to the recent banking crisis affecting traditional lending institutions as well as crypto-friendly banks Signature and Silvergate Capital.
