© Reuters. FILE PHOTO: In this illustration, representations of the Bitcoin cryptocurrency are seen, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
By Amanda Cooper and Rae Wee
LONDON/SINGAPORE (Reuters) – Bitcoin fell as much as 5.7% on Tuesday, on track for its biggest one-day drop in two weeks, as a sell-off hit cryptocurrencies and other risk assets such as stocks.
The price was last down 4.2% at $64,550, having fallen to a two-week low of $63,555, while ether fell 4.4% to $3,355.
continues to post a 52% year-to-date gain as investors have flocked to US exchange-traded funds backed by spot bitcoins.
The price hit an all-time high of nearly $74,000 on Thursday last week, prompting some profit-taking, along with a series of US data releases that suggested the Federal Reserve may not cut interest rates this year as much. as previously thought.
In the last week, bitcoin has fallen almost 9%, on track for its biggest weekly drop since last September, while ether has lost 13% following an upgrade to the underlying Ethereum network.
But performance has not been so weak across the entire crypto complex.
Smaller tokens, also known as “altcoins,” have attracted their own flows. The solana network's sol token has gained 19% in the last week, while avalanche's avax coin has risen 17%, according to Coingecko.
“In light of bitcoin's recent all-time high and subsequent correction, we anticipate a period of market recalibration as investors seek balance amid unprecedented inflows into spot bitcoin ETFs,” analysts at exchange Bitfinex said. in a note.
Capital flows into the 10 largest bitcoin ETFs have slowed in recent days.
According to data from LSEG, $178 billion flowed into major ETFs on Monday, compared with more than $400 billion on several days last week.
