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Bitcoin price losses have triggered declines of up to 10% in altcoins. BTC continues to stay near its lows. This week, there was no strong demand in the ETF channel, and according to yesterday’s data, BlackRock’s fund started seeing no net inflows again after more than 70 days.
Why Is Bitcoin Dropping?
The US stock markets started the day with losses exceeding 1.4%. NASDAQ is down by 2.14%, and BTC is at $63,100. The decline began following the announcement of the first quarter US gross domestic product (GDP), which was reported at 1.6% against an expectation of 2.5%. This lower-than-expected figure indicates that the Federal Reserve’s historic interest rate hikes are putting significant pressure on consumers and the economy.
Alphabet shares fell by 5% while AMAZON and Microsoft started the day with nearly 4% losses. Personal consumption growth this quarter dropped from 3.3% in the previous quarter to 2.5%. With inflation remaining strong and GDP coming in so weak, it’s uncertain what the Fed will do next.
The current trend is risky, and if BTC continues to lose value, we could see it drop to $59,750 and $54,490. For now, we need to see how the members of the Fed assess and interpret the current situation.
