Latest slide takes bitcoin 22pc below the peaks that crypto hit in March

The value of the world’s most traded cryptocurrency fell nearly 16pc in April, as investors booked profits on a sizzling rally that had taken the price to record highs above $70,000.

But the blockchain token is still up 35pc so far this year

Bitcoin fell by as much as 5.6pc to its lowest point since late February. It was last down 4.8pc at $57,001, while losses in ether were more modest, down 3.6pc at $2,857, also its weakest since February.

The price of bitcoin is now 22pc below March’s record high of $73,803 – technically putting it in a bear market.

But it is still up 35pc so far this year and double where it was this time last year, thanks in large part to the billions of dollars flowing into newly minted exchange-traded funds since January.

“The recent downtrend can be attributed to increased profit-taking by investors who entered the market during the downturns of 2022 and 2023, as well as ETF investors who witnessed significant price appreciation on their shares after entering the market in the early weeks of 2024,” Fineqia research analyst Matteo Greco said.

Crypto-related stocks fell in premarket trading. Shares in crypto exchange Coinbase fell 4.6pc, while miners Riot and Marathon Digital dropped 4.2-4.3pc.

On the macro front, the Federal Open Market Committee (FOMC) is not expected to make any changes to interest rates, but the view is taking root among investors that the Fed may not cut rates at all this year, delivering a blow to interest rate-sensitive assets such as cryptocurrencies, emerging market stocks and bonds or even commodities.

Investors have responded accordingly. The 10 largest US spot bitcoin ETFs are facing their biggest weekly outflow since their inception in January.

Outflows are up to $496m this week, mostly as flows into BlackRock’s iShares Bitcoin Trust – the largest ETF in terms of holdings – have slowed.

One expert said the decline in bitcoin is entering a new stage

Even smaller alt-coins, which can sometimes benefit from weakness in the two big tokens, have been punished.

Data from crypto website Coingecko shows Solana’s sol token has lost almost a quarter of its value over the last seven days, as have meme coins dogecoin and shiba inu – both made popular in 2021 in part by Tesla owner Elon Musk.

Bitcoin’s so-called “halving event” last month has done little to prop up the price. Since April 20, when halving took place, bitcoin has dropped some 15pc. Many investors bought into the market in the run-up to the event, which involves a change to the cryptocurrency’s underlying technology designed to cut the rate at which new bitcoins are created.

From a charting perspective, Alex Kuptsikevich, a senior market analyst for the FXPro platform, said the decline in bitcoin is entering a new stage.

Not only is May a month of seasonal weakness for bitcoin, the leg down in the price in the past few weeks brings $55,700 and $51,000-$52,000 into focus, he said.

“However, both FOMC announcements later today and monthly jobs data on Friday have enough potential to accelerate or reverse the downtrend,” he said.