Bitcoin (BTC) has turned downward again and broke the 60,000 dollar support level. This situation is quite bad for altcoin investors. The breach of the 60,400 dollar level worried investors about larger losses, and the expected happened. So, what is the reason for the decline in cryptocurrencies?
Why is Bitcoin Falling?
BTC price has turned downward again and continues to decline in July after testing 64,000 dollars just hours earlier. This discouraging drop is causing already weakened altcoins to weaken further. Altcoins have started to retreat to supports again after resistance tests.
In the coming hours, the US FOMC Minutes will be released. In these minutes, we may see new details about the last Fed decision. Specifically, we will understand why Fed members revised their 3-year interest rate forecasts upwards despite the good recent inflation data. The nearest stop for BTC is 58,500 dollars, and if this is lost, the optimism from the higher low formation will be undermined. Ultimately, there will be concerns about a drop to 52,000 dollars. Some reasons for the decline are;
- MTGOX refunds start this month.
- The German government continues to sell BTC.
- The US has started selling Silkroad assets.
- Yesterday’s JOLTS data reflects strong employment.
- PMI data continues to reflect economic strength.
- Fed Chairman Powell was not very optimistic about rate cuts this year.
