Bloomberg: The cryptocurrency market has significantly declined so far in August, while global stock markets are returning to historical highs

ChainCatcher news, according to Bloomberg, so far this month, Bitcoin and the broader cryptocurrency market have seen significant declines, while global stock markets are returning to historical highs after shaking off fears about U.S. economic growth.

Bitcoin fell about 10% in August, lagging nearly 1% behind the MSCI Inc. global stock index's gains, and also underperforming against gold prices, which have risen to historical highs. The Bloomberg Global Bond Index rose nearly 2% during the same period.

Analysts point out that the U.S. government's handling of seized Bitcoin (which is currently worth about $12 billion) is one of the challenges facing digital assets. According to an analysis report from Arkham Intelligence, on-chain data shows that the U.S. transferred $600 million of seized Bitcoin to a wallet on an exchange operated by Coinbase Global Inc. last week.

Khushboo Khullar, a partner at Lightning Ventures, which invests in Bitcoin-related companies, stated that the U.S. government's potential sale of Bitcoin "has led to this temporary downward pressure on prices, but we expect this impact will not last long."