Coin Edition -
- Bitcoin, trading at a mark of $66k, has plummeted by over 5% in the last 24 hours.
- The key factors behind the bearish market are the declining demand for ETFs and waning expectations of the Fed’s rate cut.
- The crypto market seems “weak” in the last 12 hours, triggered by the latest US economic data.
Bitcoin has been adversely impacted by the declining bets on the Federal Reserve’s looser monetary policies and the decreasing demand for Bitcoin ETFs. With a decline of more than 5% in the past 24 hours, the cryptocurrency has descended to a weekly low.
While the US inflation pressures have led to the fading expectations on the Fed’s interest rate cuts, which in turn triggered the growth of the US Dollar, the crypto sector is reportedly in pain.
According to a Bloomberg report, Stefan von Haenisch, Head of Trading at OSL SG Pte., commented that the prevailing pessimism on the potential rate cuts has highly affected the crypto space, “where there has been a selloff as the week gets underway — no sector is unaffected, especially those where prices have outperformed Bitcoin over last six months, for example, memes.”
Following the Spot Bitcoin ETF launch, Bitcoin proved more stable than any other cryptocurrency. With the increasing demand for Bitcoin ETFs, Bitcoin grew from $46K to a substantial high of $69K, surpassing the cryptocurrency’s previous all-time high (ATH). On March 14, Bitcoin even set a new ATH of around $73,700, hinting at a potential bullish rally.However, over the past few days, Bitcoin, along with many other altcoins and memecoins, has been exhibiting a downward trend, invoking anxiety among investors. As of the press, Bitcoin is trading at $66,612, with a daily decline of 5.56% and a weekly decline of 5.39%. As per Richard Galvin, co-founder of DACM, the overall crypto market looked “weak” over the past 12 hours, triggered by the latest US economic data.
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