Crypto News – As rate-cut confidence wanes, the US Dollar Index rises, and global concerns increase, the price of bitcoin has decreased.
BTC Macroeconomic Headwinds: Bitcoin Plunges With 2 Days to Halving
According to The Block’s Price Page, the largest digital asset by market capitalization has dropped by more than 0.56% in the last day due to a confluence of negative factors, and is currently trading for $62.377.
When U.S. Federal Reserve Chair Jerome Powell stated that interest rates would probably stay higher for a longer period of time, the price of bitcoin started to decline. Powell observed that the US Federal Reserve probably won’t hit its 2% inflation target very soon on Tuesday at a discussion held in Washington.
Right now, given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us.
Powell
The Reasons Behind Bitcoin’s Fall
Investor enthusiasm for spot bitcoin ETFs may have been influenced by waning expectations of an impending rate cut. The Block’s Data Dashboard indicates that spot bitcoin ETF volumes have decreased from their peak in early March.
The U.S. Dollar Index, which gauges how well the dollar performs against other major foreign currencies, has increased by 4.38% since January, according to TradingView data, and it reached a six-month high of 106.372 on Wednesday, its greatest five-day climb since February 2023. Moreover, investors are becoming more cautious due to increasing geopolitical concerns, particularly the rise of violence in the Middle East.
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