Bitcoin
Bitcoin price drops 4.3% in 24 hours: what’s next for BTC?
O Bitcoin Market witnessed a sharp decline today, with BTC dropping from $63,446 to $60,763 in a matter of hours, marking a notable 4.3% drop in the last 24 hours. Additionally, Bitcoin has seen a 15% drop over the past month since reaching a peak of $70,000.
This sudden drop is attributed to several factors affecting the US economy and investor confidence.
Here is a detailed look for you.
Why is the price of Bitcoin falling?
US Economic Indicators
Recent data on inflation and consumer sentiment in the United States have played a key role in Bitcoin’s downward spiral. The University of Michigan report showed a drop in consumer sentiment from 77.2 in April to 67.4 in Mayreaching a six-month minimum and falling short of market projections.
Furthermore, inflation expectations for next year rose to 3.5%, reaching a six-month high, further exacerbating economic anxieties.
Fed Reserve Cautionary Notes
Statements by Federal Reserve officials also increased market uncertainty. Fed official Lorie Logan underscored the upside risks to inflation and underscored the need for policy adaptability, suggesting a rate cut is premature. Similarly, Federal Reserve Governor Bowman emphasized the importance of maintaining political stability over an extended period.
Outflows from US Spot Bitcoin ETFs
Alongside economic indicators, there have been significant outflows from US spot Bitcoin ETFs, notably the Grayscale Bitcoin Trust (GBTC), surpassing $100 million on Friday. This movement reflects investors’ apprehension amid economic uncertainties.
US$50 million in settlements
The broader crypto market witnessed substantial settlements, totaling more than US$156 million in 24 hours. This included $131 million in long positions and nearly $25 million in short positions. The market saw more than $50 million in liquidations in just one hour, indicating a rapid and impactful change in sentiment.
Bitcoin Price Correction Ahead?
Additionally, Michael van de Poppe, a prominent cryptocurrency analyst, shed light on the ongoing final accumulation phase in Bitcoin market dynamics. This phase is characterized by periods of low volatility and erratic price movements, signaling a critical juncture in Bitcoin price action.
According to van de Poppe, Bitcoin is currently redoing towards a crucial level of support. Failure to maintain this level could lead to a deeper correction, with Bitcoin revisiting the $52,000 to $55,000 range.
If this range is breached, it would signify the final stage of the correction before potential bullish momentum resumes.
Is this a buying opportunity or time to HODL? Tell us what you think.