Despite many positive developments for cryptocurrency investors, Bitcoin‘s price continues to move in the opposite direction. The king of cryptocurrencies turned downward when it was above $70,600. So, what caused this decline? Will the BTC price turn upward again?
Why is Bitcoin Falling?
At the time of writing, the Services PMI data came in roughly 10% above expectations. This reflects the strength of the service sector, a key and resilient component for inflation. If demand here has increased abnormally and is rising rapidly above 50, it means the Fed’s fight against inflation will be prolonged. On the other hand, Gensler recently reiterated his previous statements, saying that most cryptocurrencies are securities. He did not speak very favorably on the day the ETH ETF approval was expected.
In summary, BTC’s price losses followed the extremely high PMI data, which added to the risks of sticky inflation and the Fed’s potential for more tightening or maintaining policy at a peak for an extended period. At the time of writing, BTC had fallen to $67,800.
