Bitcoin has taken a significant hit in the cryptocurrency market, dropping to $65,000 after failing to reach its recent high of $73,700. Market expert Michael van de Poppe has provided insights into the factors contributing to this downward trend.
One key event impacting the market was the release of Consumer Price Index (CPI) data last Wednesday, which influences the Federal Reserve’s decisions on interest rates. The lower-than-expected CPI and PPI data signaled potential rate cuts, creating a positive environment for risk assets.
Despite these indicators, the crypto market continued to decline. Consumer sentiment data released on Friday showed weaker than expected results, suggesting economic fragility. Federal Reserve Chairman Jerome Powell’s hawkish speech further added to market uncertainties.
Bond yields also dropped, typically seen as favorable for Bitcoin and risk assets. However, unexpected Dollar strength due to the ECB’s actions complicated the market dynamics. The market, especially Bitcoin, struggled to recover despite positive economic data.
The ongoing uncertainties, including the listing of the Ethereum ETF, have contributed to the market’s weakness. With rate cuts looming and the Dollar’s strength persisting, the coming weeks will be crucial for market direction.
Bitcoin was trading at $65,280, down 2% in the past 24 hours and over 5% in the past week. The downward trend in BTC’s price is evident on the daily chart, reflecting the current market conditions.