Bitcoin declines 5.7% on Tuesday

Bitcoin dropped 5.7 per cent on Tuesday, heading for its biggest one-day decline in two weeks amid a sell-off in cryptocurrencies and other risk assets like stocks, Reuters reported.

The price fell to a two-week low of $63,555 before recovering slightly to $64,550, while ether also declined by 4.4 per cent to $3,355.

Despite the recent drop, Bitcoin is still up 52 per cent for the year, driven by investor interest in US exchange-traded funds (ETFs) backed by spot bitcoin.

The price hit a record high of nearly $74,000 last week, prompting profit-taking and concerns about potential Fed interest rate hikes.

Bitcoin has fallen by nearly nine per cent in the past week, its largest weekly decline since September, while ether dropped 13 per cent following an upgrade to the ethereum network.

However, other altcoins like sol and avax have seen gains of 19 per cent and 17 per cent, respectively, according to the report.

Analysts expect a period of market recalibration as investors adjust to the recent volatility and inflows into bitcoin ETFs.

Flows into the top 10 bitcoin ETFs have slowed in recent days, with $178 billion entering on Monday compared to over $400 billion on some days last week.