Bitcoin Price Drops, the most widely used cryptocurrency globally, is still seeing some selling pressure as traders become increasingly anxious in anticipation of the Federal Reserve’s announcement about interest rate reductions. There has been an additional 2% decline in the price of Bitcoin during the past twenty-four hours, bringing it below the $68,500 barrier.
Fed to Keep Rates Higher Than Expected
The Bank of Canada and the European Central Bank reversed course last week, lowering interest rates. In light of last week’s encouraging employment statistics, however, the Federal Reserve is not likely to take such measures. In March, Bitcoin hit a new high of $73,798 thanks to money flowing into Bitcoin-specific exchange-traded funds in the US. But ever since then, it has failed miserably at reaching new heights. Cryptocurrencies and other speculative assets face a potentially hostile environment ahead of Wednesday’s inflation statistics and Federal Reserve forecast. This may fuel the fire of worries that interest rates will stay elevated for a long time.
No news is bad news in crypto, according to Anand Gomes, co-founder of the derivatives platform Paradigm, who spoke to Bloomberg. Like a person with an addiction, the market can’t keep its head up without regular doses of positive news. Therefore, the lowest possible path is the one with no obstacles.
More Pain Ahead for Bitcoin?
As a result of the recent halving event, Bitcoin Price Drops expert Willy Woo has observed that the cryptocurrency is currently experiencing unusual mining capitulation. Because of this process, weaker miners are elisor Bitcoin holdings, explained Woo. In the aftermath of such sell-offs, Woo claims that the price of Bitcoin Price Drops will typically recover. On the other hand, Woo warns that for a price spike, there must first be a cleaning out of excessive speculative interest in the Bitcoin futures markets. An emphasis was placed on the fact that liquidations must occur before a pump.
However, following 19 consecutive days of high inflows, Bitcoin exchange-traded funds (ETFs) experienced their first withdrawals of capital. The first net outflow occurred on June 10, marking the first time Bitcoin spot ETFs faced a net outflow following 19 consecutive net inflows. The total net outflow was $64.9318 million. A substantial $39.5366 million was removed from the Grayscale ETF (GBTC) in a single trading day. The Bitwise ETF (BITB) and the BlackRock ETF (IBIT) reported an inflow of $7.5910 million and $6.3433 million, respectively, in contrast to the previous statement.
Also Read: Bitcoin Price Drops Sharply Today: Why?
