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Bitcoin price drops 4.3% in 24 hours: what’s next for BTC?
THE Bitcoin market we saw a sharp decline today, with BTC plummeting from $63,446 to $60,763 in a matter of hours, marking a notable decline of 4.3% in the last 24 hours. Furthermore, Bitcoin has observed a 15% decline in the last month since it reached the peak of $70,000.
This sudden drop is attributed to various factors affecting the US economy and investor confidence.
Here’s an in-depth look for you.
Why is the price of Bitcoin collapsing?
US economic indicators
Recent data on inflation and consumer confidence in the United States have played a critical role in Bitcoin’s downward spiral. The University of Michigan report highlighted a decline in consumer confidence 77.2 in April to 67.4 in Mayhitting a six-month low and falling short of market projections.
Furthermore, inflation expectations for next year rose to 3.5%, hitting the highest level in six months, further exacerbating economic anxieties.
Cautionary notes from the Fed Reserve
Statements from Federal Reserve officials also increased market uncertainty. Fed official Lorie Logan highlighted upside risks to inflation and stressed the need for policy adaptability, suggesting a rate cut is premature. Likewise, Federal Reserve Governor Bowman underlined the importance of maintaining political stability for a prolonged period.
Outflows from Spot Bitcoin ETFs in the US
In addition to the economic indicators, there have been significant outflows from Spot Bitcoin ETFs in the US, particularly the Grayscale Bitcoin Trust (GBTC), which topped $100 million on Friday. This movement reflects investor concerns amid economic uncertainty.
$50 million settlements
The broader cryptocurrency market has witnessed this substantial liquidations, for a total of over $156 million in 24 hours. This included $131 million in long positions and nearly $25 million in short positions. The market saw liquidations of more than $50 million in just an hour, indicating a rapid and impactful shift in sentiment.
Bitcoin price correction in sight?
Furthermore, Michael van de Poppe, a prominent cryptocurrency analyst, shed light on the final phase of accumulation underway in Bitcoin market dynamics. This phase is characterized by periods of low volatility and erratic price movements, signaling a critical moment in Bitcoin’s price action.
According to van de Poppe, Bitcoin is currently under review towards a crucial support level. Failure to hold this level could lead to a deeper correction, with Bitcoin revisiting the $52,000 to $55,000 range.
If this range is breached, it would signify the final stage of the correction before potential bullish momentum resumes.
Is this a buying opportunity or time to HODL? Tell us what you think.