Bitcoin Plunges to 4-Month Low Amidst Crypto Sell-Off, While Stocks Soar

Bitcoin has experienced a fourth consecutive day of decline, falling to its lowest point since February. This downturn coincides with a broader crypto market selloff, contrasting sharply with record highs in global stocks. Factors contributing to this bearish sentiment include waning demand for US Bitcoin ETFs, government disposal of seized tokens, and the uncertainty surrounding the impact of US political changes. The recent release of Bitcoin from the failed Mt. Gox exchange is further adding to market anxiety, with speculators unsure how much of the $8 billion haul will be sold. The correlation between Bitcoin and global stock markets is diminishing, raising concerns about whether the current crypto aversion might signal a cautious period for mainstream investments. Market analysts, like Stefan von Haenisch of OSL SG Pte, attribute the current lack of enthusiasm in the crypto market to a dearth of positive news and the absence of dovish monetary policy from the Federal Reserve. The hope for rate cuts and balance sheet expansion from the Fed remains a key catalyst for crypto recovery. The recent decline follows the initial surge in Bitcoin prices driven by the launch of US ETFs, which has since cooled down, leaving a negative impact on the entire digital asset market.