Bloomberg: Bitcoin and the crypto market have significantly declined since August, while global stock markets are returning to historical highs

Odaily reports that so far this month, Bitcoin and the broader crypto market have seen significant declines. However, global stock markets are returning to historical highs after shaking off fears about U.S. economic growth.

Bitcoin fell by about 10% in August, lagging behind the nearly 1% rise in MSCI Inc.'s global stock index and also trailing the performance of gold prices reaching historic highs. The Bloomberg Global Bond Index rose nearly 2% over the same period.

Analysts point out that one of the challenges facing digital assets is how the U.S. government handles risks associated with confiscated Bitcoins (whose addresses currently hold approximately $12 billion worth of cryptocurrency). According to an analysis report from Arkham Intelligence, on-chain data shows that last week, $600 million worth of confiscated Bitcoins were transferred into a wallet operated by Coinbase Global Inc.

Khushboo Khullar, a venture partner at Lightning Ventures which invests in Bitcoin-related companies said: "The potential sale of Bitcoin by the US government has caused this temporary downward pressure on price but we expect this impact will not last too long." (Bloomberg)