Bitcoin's biggest rally since 2021 is fizzling out

Bitcoin's biggest rally since 2021 is fizzling out
Bitcoin's early-year rally has fizzled out over the past month.Marco Bello/Getty Images
  • Bitcoin has slumped nearly 10% over the past month after starting 2023 on a tear.
  • The token is trailing gold and lagging stocks and bonds over that period.

Bitcoin's rally this year looks like it could fizzle out as increased regulatory scrutiny and the collapse of two crypto-friendly banks weigh on investors' appetite for the token.

The most popular cryptocurrency has slumped by nearly 10% over the past month – and more than 5% in the past five days alone – to trade at around $27,000.

The declines come after bitcoin started the year on a tear. Investors' optimism that the Federal Reserve would soon start slashing interest rates fueled a 67% rally over the first three months of 2023.

The token has lagged gold, which is nearing an all-time high thanks to its haven appeal, since then.

It's also trailing the benchmark S&P 500 stock market index, which has edged up 1% over the past month, as well as Bloomberg's Global Aggregate Bond Index, which has traded nearly flat over the same period.


Bitcoin's underwhelming month has coincided with a string of senior crypto execs warning about regulatory stasis in the US. Watchdogs including the Securities and Exchange Commission have cracked down on major exchanges including Binance and Kraken.

Crypto-friendly banks Signature and Silvergate Capital were also early victims of the ongoing regional banking crisis, which some analysts believe could also cause short-term disruption for the token.

Other cryptos have also slumped in the past month, with ether falling 10% and solana down 17%. Meme token dogecoin has seen its price fall 18% over the same period.

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