18.08.202503:57:16UTC+00Bitcoin Extends Retreat

Bitcoin experienced a decline, settling around $115,000 as it continued its retreat from recent record highs. This downturn was primarily driven by profit-taking activities and diminishing expectations for interest rate cuts by the US Federal Reserve, negatively impacting market sentiment. Unexpectedly robust US producer inflation and retail sales data decreased the chances of significant monetary easing by the Fed, placing additional pressure on risk assets. Further challenges arose from comments by the US Treasury regarding strategic reserves, which heightened concerns about tighter liquidity. This sentiment was compounded by leadership shifts within major financial market institutions, contributing to policy uncertainty and increased risk aversion among investors. The decrease in Bitcoin's price coincides with a notable shift towards alternative cryptocurrencies, as evidenced by Bitcoin’s market share falling to 59.4%, its lowest level since 2020, breaching the historically significant 60% mark. Despite these challenges, Bitcoin continues to gain support from institutional investments and positive regulatory developments, including its acceptance within US retirement portfolios, which enhances its legitimacy in mainstream financial markets.