(Bloomberg) -- Bitcoin slumped to a more than one-month low with this year’s record-breaking rally showing signs of fatigue in the absence of fresh market catalysts. 

After reaching an all-time high of almost $74,000 in March amid surging optimism over the approval of US exchange-traded funds to directly hold the original cryptocurrency, Bitcoin has retreated around 14%. Adding to the malaise is fluctuating expectations for cuts in US interest rates, which has lessened demand for most riskier assets. 

“Cryptocurrencies have had their wings clipped by the sell-off in equity markets, reflecting a downturn in risk appetite in global finance,” said Alex Kuptsikevich, FxPro senior market analyst, in a note on Friday.

Bitcoin fell as much as 2.4% to$63,490, the lowest level since May 15, and is down about 3% since last Friday. Other cryptocurrencies were mostly little changed, with Ether, XRP, Cardano and Solana all down around 1% or less. 

“The bull run over the past few quarters has lost momentum and is in danger of failing,” said Fiona Cincotta,  senior financial markets analyst at City Index. “Given Bitcoin’s finite supply, it is considered a hedge against inflation, but with inflation cooling globally back to normalized levels, Bitcoin is coming under pressure.”  

--With assistance from Emily Nicolle and Isabelle Lee.

©2024 Bloomberg L.P.