The biggest digital asset has fallen about 10% in August against a rise of almost 1% in MSCI Inc.'s global stock index
Big sell-off
An index of the top 100 digital assets suffered its worst decline on August 5 since November 2022.
The pullback came alongside a fall in stocks as fears over US growth and the unwinding of the yen's carry trade hurt risk appetite globally.
Expectations for the US economy have since stabilized following reassuring data, and MSCI's global index of shares is now just 1.5% below the record set in July.
In contrast, appetite for exposure to cryptocurrency is starting to run out.
An example of this comes from the so-called funding rate for bitcoin perpetual futures on the Binance exchange, the largest for digital assets.
These contracts are often used by speculators as they do not have a fixed maturity. But CryptoQuant data shows that the funding rate – the cost for positions – is the most negative since 2022, signaling reduced appeal from fast-money traders.
Bitcoin hit a record high of US$73,798 in March , lifted by bets on looser US monetary policy and inflows into special US exchange-traded funds.
moneyreview.gr with information from Bloomberg
