Bitcoin experiences another day of decline, with investors preparing for potential market fluctuations in April.

The stock market began the new month and quarter on a decline for the second consecutive day, coinciding with an increase in Treasury yields and a strong U.S. dollar.

On Tuesday, the flagship cryptocurrency dropped more than 5% to $65,747.74, resulting in a two-day loss of approximately 7%. This decline began on Monday, following news of growth in the manufacturing sector for the first time since September 2022 and a decrease in investor bets on June rate cuts. As a result, it is now approximately 11% below its all-time high, which was reached on March 14.

went down with it, losing 4.5% to trade at $3,319.08.

The price of Bitcoin reached its highest level of the year, while the price of the US dollar, which has an inverse relationship with Bitcoin, reached its highest level in almost five months.

"Joel Kruger, market strategist at LMAX Group, stated that Bitcoin's recent explosive performance in Q1 has been followed by a period of correction. Despite this, the U.S. economic data has been stronger lately, and inflation remains a concern. As a result, there has been a repricing of Fed expectations, leading to increased demand for the U.S. Dollar on the basis of more attractive yield differentials."

The sudden drop in bitcoin price late Monday night may have been caused by a large bitcoin holder, or "whale," who transferred more than 4,000 bitcoin to the Bitfinex exchange. Data from CryptoQuant shows a spike in that exchange's reserves, which typically signals a boost in selling activity, at the same time.

Premarket trading saw stocks linked to the performance of bitcoin decline, with crypto exchange falling 4%, software provider losing nearly 7%, and the largest mining stocks, including and , dropping 4% and 6%, respectively. One of the top-performing miners this year, also slid 4%.

Bitcoin and related stocks, including mining stocks, may experience turbulence in April due to the upcoming bitcoin halving. This event will decrease the revenue of bitcoin miners by reducing their reward, which could negatively impact their performance. However, historically, the bitcoin halving has been followed by rallies of 300% or more in the ensuing months.

Bitcoin is still up 54% for 2024.