Bitcoin Price Drops the most common cryptocurrency worldwide, still suffers sweet selling pressure because traders get more and more anxious before the Fed’s rules on reducing interest rates are made public. Besides, the price of Bitcoin has been down by two more percent in the last 24 hours, meaning it fell below the $67500 level.
Fed to Keep Rates Higher Than Expected
The Bank of Canada and the European Central Bank surprisingly cut back on the interest rate last week. Yet, given last week’s encouraging jobs statistics, the Federal Reserve is most likely reluctant to follow this route. BTC rocketed to its latest high of $73,798 in March through Money pumped into Bitcoin-only ETFs in the US. However, since then, it has gotten its just desserts by failing even to come close to new heights. Cryptocurrency and other speculative financial matters are doomed to exist in a potentially hostile environment in the face of Wednesday’s inflation statistics and the Federal Reserve’s outlook. This, in turn, might trigger heightened concerns that the rates might remain at a raised level for an extended period.
For the record, no news is good news when it comes to. Crypto, as Anand Gomes, co-founder of derivatives trading platform Paradigm, shared his view with Bloomberg. It is like an addiction in the market that cannot stand on its own two feet without new information coming its way. Therefore, the path of least resistance is no path at all, and that’s why scalping is one of the paths of least resistance.
More Pain Ahead for Bitcoin?
According to Bitcoin Price Drops expert Willy Woo. One of the effects of the recent halving event is that the cryptocurrency is now in a strange mining capitulation phase. Woo explained that less profitable miners eased their possession of Bitcoin through this process. Subsequently, after such sell-offs, Woo is convinced Bitcoin Price Drops will be back on track for recovery. On the contrary, Woo mentions that if a price spike is going to happen, it will initially mean. The individualization of the speculative forces in the futures markets of Bitcoin. Considerable stress was laid upon the fact that only pumping should follow liquidations.
Nonetheless, after 19 impulsive inflow days, Bitcoin ETFs grappled with withdrawals with capital effects. The first net outflow happened on June 10, marking the first time. Bitcoin spot ETFs faced a net outflow following 19 consecutive net inflows. The whole sum that came out reached $64.9318 million. A big part of this came from the Grayscale ETF (GBTC). With a whopping $39.5366 million outflow occurring in just one trading day. Contrastingly, the Bitwise ETF (BITB) and the BlackRock ETF (IBIT) reported an inflow of $7.5910 million and $6.3433 million, respectively.
FAQs
What is the Federal Reserve's approach to interest rates?
Unlike the Bank of Canada and the European Central Bank, the Federal Reserve is likely to keep interest rates higher than expected, creating a challenging environment for Bitcoin.
How did the Bitcoin halving event impact its price?
The Bitcoin halving event led to a phase of mining capitulation, where less profitable miners sold off Bitcoin, contributing to its price drop but potentially setting the stage for a recovery.
What happened with Bitcoin ETFs in recent weeks?
Bitcoin ETFs experienced their first net outflow on June 10, with $64.93 million leaving, largely driven by a significant outflow from Grayscale's GBTC.
What is the outlook for Bitcoin's price moving forward?
Experts like Willy Woo suggest Bitcoin may recover after the sell-offs, but price spikes could depend on speculative forces and liquidations in Bitcoin's futures markets.
