A sharp decline in digital currencies due to liquidity concerns

Digital currency markets witnessed a noticeable decline during Tuesday’s trading, as Bitcoin fell by 3.1% to trade at about $107,544, while Ethereum fell by 5.0% to $3,867.90, according to data from the “CoinMarketCap” platform.

Analysts believe that this decline reflects a shift in risk appetite among investors, especially financial institutions and hedge funds, in light of expectations of tightening monetary policies in major economies.

Despite the decline, the data indicates that Bitcoin still maintains 58.90% of the total market value of digital currencies, compared to 12.78% for Ethereum, which reinforces the trend towards more liquid and stable assets.