Bitcoin declines 20% amid trade, stagflation woes

Ongoing trade tensions and stagflation fears pushed the price of Bitcoin, the world's most popular cryptocurrency, to drop 20% in the first three months this year, with further weakness expected in the second quarter, say analysts.

- NUNTAWUN POLKUAMDEE

The decline comes amid slowing economic growth and interest rate cuts by the US Federal Reserve that are proceeding more gradually than markets anticipated, said Woramet Chansen, an investment adviser at Merkle Capital, Thailand's first digital asset fund manager.

Digital assets were highly volatile and posted a significant decline in March, led by Bitcoin, which bottomed out at US$76,600, the lowest level in four months.

The altcoin market also fell, with Ethereum, the second-largest crypto-currency, plunging 55% from a recent high, marking a 16-month low. This sharp correction reflects rising investor concerns over risk assets, he said.