Cryptocurrencies deepened their losses in yesterday's trading, hit by a wave of selling that swept global markets in the wake of concerns over monetary policy tightening in the United States, which dampened investors' appetite for risk.
Bitcoin fell 3.37% to $62,169, Ethereum dropped 4.56% to $1,653, Solana declined 5.22% to $68.86, and XRP slipped 2.75% to $1.10.
Strategy, the company owned by billionaire Michael Saylor, purchased $39.4 million worth of Bitcoin, once again relying on its common shares to finance its cryptocurrency purchases for the third consecutive week.
This decline in the cryptocurrency market comes as investors await further US economic data that could provide fresh indications about the direction of monetary policy in the coming months.
Traders fear that continued inflationary pressures could keep interest rates elevated for a prolonged period, limiting liquidity flows into high-risk assets, chief among them digital currencies.
The cautious mood was also reflected in trading volumes on a number of cryptocurrency asset platforms, with many investors opting to reduce their positions or defer buying decisions until the outlook on the future path of US interest rates becomes clearer.
Analysts believe that continued volatility in traditional markets — particularly equity and bond markets — is adding to the pressure on cryptocurrencies, which remain classified among the assets most sensitive to shifts in global risk appetite.
Despite the recent declines, some major institutional investors continue to show growing interest in Bitcoin, taking advantage of lower prices to build long-term investment positions.
Proponents of cryptocurrencies believe that rising institutional demand could help support the market over the long term, especially as the infrastructure related to digital assets continues to develop and their applications in finance and technology expand. Nevertheless, short-term price movements remain hostage to global economic developments and investor expectations regarding the monetary policies of major central banks.