Cryptocurrency blues: Bitcoin is in a slump, hitting a one-month low on Tuesday. The price dropped as much as 2.7%, reaching around $65,300. Other digital currencies like Ether, Solana, and Dogecoin fared even worse with steeper losses.
What's behind the plunge?
- Investor Exodus: Money is flowing out of crypto investment products, suggesting investors are getting cold feet.
- Interest Rate Jitters: The possibility of the US raising borrowing costs for a longer period is making investors wary of risky investments like Bitcoin.
Traditional Investments Take the Lead: Stocks and bonds are currently offering better returns than Bitcoin. This is a shift from earlier in the year, when Bitcoin outperformed traditional markets.
Crypto Startup Boom Continues: Despite the price drop, fundraising for cryptocurrency startups remains strong. Estimates suggest over $100 billion has been raised recently. While this capital fuels industry growth, the outcome for investors has been a mixed bag.
