Bitcoin’s price took a hit, dropping to $69,000 after reaching a high of $71,400, resulting in a 1.3% decrease over the past 24 hours. Other cryptocurrencies like Ether and solana also experienced slight declines. Despite the dip, the broader CoinDesk 20 only fell by 0.6%, with cardano and litecoin showing some gains.
The decline in the crypto market can be attributed to traders potentially taking profits following a recent surge in prices. This reversal occurred as the U.S. reported a slowdown in job creation and a decrease in the Manufacturing PMI survey. However, the bond market remains optimistic, with the 10-year U.S. Treasury yield reaching its highest level in four months.
On the other hand, U.S. stocks saw some gains, with the Nasdaq up 0.7% and the S&P 500 up 0.4%, driven by strong quarterly results from companies like Amazon. Despite the recent setback in the crypto market, the sector has seen overall growth over the past month, with bitcoin up by nearly 15%.
CoinDesk analyst James Van Straten highlighted the increased interest in U.S.-based spot bitcoin ETFs, which have seen significant inflows since their launch earlier this year. While these inflows have historically coincided with local price peaks, they indicate growing interest and investment in the cryptocurrency market.
Overall, the recent pullback in bitcoin’s price is part of a larger trend in the crypto market, influenced by various economic factors and market conditions. As investors navigate these fluctuations, it’s essential to stay informed and monitor developments to make informed decisions in the ever-changing world of cryptocurrency trading.