Cryptocurrencies, especially Bitcoin, continue the new week with declines. The number one cryptocurrency retreated to $64,782 today. Yesterday, the price was over 71 thousand dollars. Why did Bitcoin fall?
The main reason for the decline in Bitcoin is related to Fed expectations. Yesterday, the US ISM manufacturing index exceeded forecasts and reached 50.3 in March, increasing by 2.5 points compared to the previous month. Thus, the manufacturing index experienced growth for the first time in 1.5 years.
Strong ISM data has raised expectations that the US central bank may avoid a rate cut in June. The yield on 10-year US Treasury bonds also rose to 4.4 percent, reaching its highest level since November 2023.
Market expectations about the Fed’s monetary policy this year have changed. The probability of a rate cut in June dropped below 50 percent.
The resulting situation caused an escape from risky assets.
On the other hand, investments in spot Bitcoin ETFs also decreased. Yesterday ETFs had a deficit of $85 million. Last week’s recovery in ETF investments gave way to outflows. The $300 million sale seen in the Grayscale ETF also put pressure on the Bitcoin price.
Markets are now focused on the statements to be made tomorrow by Fed Chairman Powell and the PMI data to be reported for the non-manufacturing sector.
Bitcoin is traded at $64,800 as of 16.25 CET.
It was published:
Source: https://uzmancoin.com/bitcoin-neden-dustu-65-bin-dolar/
