Published on 7 May 2024 on Zacks via Yahoo Finance
The cryptocurrency market suffered a severe blow in April after a strong rally in the previous 15 months. On Mar 14, the largest cryptocurrency, Bitcoin (BTC), recorded an all-time high of 73,750.07. However, it has fallen nearly 15% thereafter. Bitcoin gained more than 67% in first-quarter 2024 after jumping 157% in 2023.
One of the major reasons behind the decline in Bitcoin price was the halving event, which took place last month. The Bitcoin halving event happens once in four years. Moreover, U.S. equity markets tumbled in April owing to market participants’ concern that the Fed will keep the interest rate higher for longer in light of the sticky inflation rate and a resilient labor market. A higher interest rate is detrimental to high-growth sectors like technology, consumer discretionary and cryptocurrency.