Cryptocurrency Market Weakens as Bitcoin Falls Below $60,000; Stocks and Precious Metals Also Under Pressure

Cryptocurrency Market Weakens as Bitcoin Trades Below $60,000 for the First Time Since February

The cryptocurrency market saw continued weakness on Tuesday as Bitcoin (BTC) spent a significant amount of time trading below $60,000 for the first time since altcoins took a hit in late February. This decline comes as stocks, gold, silver, and oil also faced pressure following the release of data by the Bureau of Labor Statistics showing a higher-than-expected increase in the employment cost index.

Investors are now eagerly awaiting the Federal Reserve’s decision on interest rates following the conclusion of the Federal Open Market Committee meeting. The market is widely expecting rates to remain steady, but all eyes will be on any hints Fed Chair Powell may give in his follow-up comments.

At the closing bell, major indices like the S&P, Dow, and Nasdaq all finished in the red, with Bitcoin experiencing a steep sell-off after hitting a high of $64,730 earlier in the day.

Analysts at Secure Digital Markets noted that Bitcoin is poised to break a seven-month winning streak, recording an 11% loss this month. Factors contributing to this decline include fading hopes for Federal Reserve rate cuts, waning demand for U.S.-based spot BTC ETFs, and a general risk-off mood in financial markets.

Despite the downturn, major stablecoins continue to see growth, providing some support to the market. However, declining inflows into spot BTC ETFs have added to the weakness, with some ETF launches falling short of expectations.

Altcoin traders also faced losses on Tuesday, with only a few tokens recording gains. The overall cryptocurrency market cap now stands at $2.2 trillion, with Bitcoin’s dominance rate at 53.4%.

As the market awaits the Fed’s decision on interest rates, the future direction of both the cryptocurrency and traditional markets remains uncertain.