Digital Assets Under Pressure: Market Fluctuations Affect Bitcoin and Ether

It seemed a promising moment for proponents of digital assets: The U.S. approved ETFs for the two largest cryptocurrencies, U.S. presidential candidate Donald Trump switched to the supporter camp, and Bitcoin lost its close correlation with stock market fluctuations. But this optimistic sentiment did not last long. During Asian trading hours on Monday, waves of selling hit the riskier market segments, reminding that the volatile nature of digital assets can work both ways. In a year when Bitcoin climbed to record highs, the leading cryptocurrency experienced a temporary drop of over 16%. Similarly, Ether, the second-largest cryptocurrency, suffered a decline of up to 23%, marking the steepest drop since 2021. These developments underscore the ongoing uncertainty and challenges in the digital asset market. Investors will need to continue to closely monitor how the dynamics in this highly volatile sector evolve.