(Bloomberg) — Bitcoin’s tumble is piquing the interest of investors who view pronounced swings in the digital token as a possible precursor for broader changes in risk appetite in global markets.
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The cryptocurrency has shed about 4% in the past two days following a near 16% plunge in April, the worst monthly drop since Sam Bankman-Fried’s FTX digital-asset empire imploded in November 2022. The token changed hands at $57,462 as of 7:24 a.m. Thursday in London, around a two-month low.
Some investors scour Bitcoin inflexions for clues about shifting liquidity dynamics that can buffet other assets. The token slid in the past few weeks as the Federal Reserve signaled interest rates will stay higher for longer, a mantra that tightened financial conditions by boosting Treasury yields and the dollar.
“Bitcoin is our favorite canary,” ByteTree Asset Management…
