Bitcoin price was below $64,000 and fell to $63,736 as this article was prepared. What’s the target? Positive expectations were held for the king cryptocurrency this week with support from the stock markets, but ETF data was not as impressive.
Why Is Bitcoin Falling?
This Friday’s upcoming PCE data will be a surprise, and we will see where the Fed stands in its fight against inflation. More importantly, the inflation data, which has been poor for three months, completely undercut optimism about the Fed’s interest rate cuts. Last year, even the most cautious experts expected a rate cut in June, but now there is talk of a further 25bp increase.
The failure in controlling inflation, which negatively affects risk markets, was recently compounded by tensions between Iran and Israel. Although mutual attacks have stopped for now, this is not something that can disappear in a day. Thirdly, accelerated net outflows through the ETF channel with Genesis sales have not fully returned yet. The lack of increased risk appetite among investors familiar with traditional markets also poses obstacles to the rise of BTC.
Halving did not initiate the expected upward movement, so Bitcoin price might test $60,000 again. If it closes below $63,224, the $59,750 zone could be targeted. This test could trigger double-digit losses in altcoins.
