Bitcoin Falls as Precious Metals Reach New Heights
Bitcoin experienced a significant downturn as it fell to approximately $88,500 on Friday. This decline occurred simultaneously with a remarkable surge in precious metals, notably silver, which exceeded $100 per ounce for the first time in history.
Record Highs in Precious Metals
Gold remains on the verge of reaching $5,000 per ounce. Meanwhile, platinum prices climbed by 5%, establishing a new all-time high. Although not classified as a precious metal, copper also saw a notable rise of 2.5%, nearing record levels.
Impact on Crypto Stocks
- Coinbase (COIN) decreased by 2.6%.
- MicroStrategy (MSTR) fell by 1.2%.
- Bitcoin miners like Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) also faced declines of 2%.
Market Overview
Despite the downturn in cryptocurrency, U.S. stocks managed to recover from earlier losses. The Nasdaq rose by 0.4%, even amidst a notable 15% decline in Intel’s stock following disappointing first-quarter guidance. Nevertheless, Intel’s year-to-date performance remains strong, gaining 17% overall.
Bitcoin Returns and Investor Sentiment
Bitcoin recorded a peak at $98,000 last week, resulting in cumulative returns of 9% during U.S. trading sessions. However, these returns have since dwindled to just 2%, signaling a decrease in demand from U.S. investors.
Outflows from Bitcoin ETFs
Recent trends indicate significant outflows from U.S. spot Bitcoin ETFs, with over $1.6 billion withdrawn in the last four trading sessions. Jasper De Maere, a desk strategist at crypto trading firm Wintermute, highlighted a rise in stablecoin redemptions into fiat. This shift suggests that some institutional investors, who had re-entered the market earlier this year, are reconsidering their positions.
As Bitcoin falters, the continuous rise in precious metals could entice more investors looking for stability in their portfolios. The current market dynamics reflect a shift in sentiment that could shape future investment strategies.
