Bitcoin Since briefly rising, the price of has fallen again above the $72,000 mark On April 8, Price dips are believed to have been caused by several factors which, no doubt, present a negative outlook for the flagship crypto.
The Inflation data is expected to be hot
Data for the March Consumer Price Index is due to be published on 10 April. Some market experts predict It is expected that this report will reveal an overall increase in inflation. The Federal Reserve could take action. hawkish stance Interest rates have a negative impact on Bitcoin and the crypto market.
Crypto investors are avoiding the market, which is why Bitcoin has been declining in price. CPI report. If the figures for inflation are favorable, it could give investors a new lease of confidence and the bullish outlook that the market needs.
It is also important to note that, given the fact that both January and february’s inflation numbers exceeded expectations in terms of expectations, what could last month’s results exceeding expectations mean for the future? As of now, the Fed Interest rates have remained steady around 5.3%. At the start of this year, there were even hints that there might be a rate cut at some stage in 2019.
There is growing concern that the Central Bank will be forced into drastic action at some stage, as inflation continues to remain well above their target of 2%. It is bad for Bitcoins’ price. Especially since there are different cryptocurrency analysts. gave bullish predictions Partly based on the assumption that several rate reductions would occur this year.
The Spot Bitcoin Exchange Traded Funds (ETFs) are back in the red
You can also find out more about the following: Spot Bitcoin ETFs Bitcoin’s recent drop has also been attributed to a decline in the number of users. The net outflow from these funds on April 8 and 9 led to significant Bitcoin drops on the markets. These outflows were primarily from the Grayscale Bitcoin Trust (GBTC)It recorded an outflow $303.3 million The following are some examples of how to get started: $154.9 million The 8th and 9th of April, respectively.
Then, there is the other Spot Bitcoin ETFs Inflows have been relatively low, indicating that their demand is declining. To put this in context, six out of ten Spot Bitcoin Exchange Traded Funds (excluding the GBTC ETF) had zero inflows in April 9 and five out of ten recorded zero on April 8 BlackRock’s iShares Bitcoin Trust (IBIT) Also, the day’s inflow was relatively small at $21.3 million.
According to CoinMarketCap, Bitcoin was trading around $69300 at the time this article was written, a drop of over 2% from the previous 24 hours.
BTC price loses $70,000 | Source: BTCUSD on Tradingview.com
The chart is from Tradingview.com.
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