Here Are The Drivers Behind The Bitcoin Price Crash To $68,000
10 April 2024 - 10:00PM
NEWSBTC
Bitcoin has again experienced a price decline since briefly
climbing above the $72,000 mark on April 8. This price dip is
believed to be due to a couple of factors, which no doubt present a
bearish outlook for the flagship crypto. Inflation Data Expected To
Come In Hot The March Consumer Price Index (CPI) data is scheduled
to be released on April 10. Some market experts predict that the
report will show a rise in overall inflation. This could lead to
the Federal Reserve taking a hawkish stance on interest rates,
negatively impacting Bitcoin’s price and the broader crypto
market. Related Reading: Shiba Inu Sees Bullish Reversal In
On-Chain Metrics, Can SHIB Price Recover? This would explain why
Bitcoin’s price has declined lately, as crypto investors remain on
the sidelines ahead of the CPI report. However, if the inflation
figures come in favorable, this could restore investors’ confidence
in the economic situation and provide a much-needed bullish outlook
for the crypto market. Also, considering that January and
February’s inflation data exceeded expectations, it is necessary to
highlight what last month’s data exceeding expectations could mean
in the long term. So far, the Fed has continued to hold interest
rates steady at about 5.3%, and there was even optimism at the
beginning of the year that there could be rate cuts at some point
this year. However, with inflation continuing to stay well
above the Central Bank’s target of 2%, there is a growing feeling
that they might be forced to take drastic measures at some point.
That is ultimately not good for Bitcoin’s price, especially since
different crypto analysts gave bullish predictions partly based on
their assumption that there would be several rate cuts this
year. Spot Bitcoin ETFs Are Back In The Red The Spot Bitcoin
ETFs have also contributed to Bitcoin’s recent decline. These
investment funds experienced a net outflow on April 8 and 9,
leading to a significant Bitcoin dump on the market. Specifically,
these outflows came from the Grayscale Bitcoin Trust (GBTC), which
recorded an outflow of $303.3 million and $154.9 million on April 8
and 9, respectively. Related Reading: VeChain On The Edge:
Insider Says VET Will Reach The Finish Line Meanwhile, the other
Spot Bitcoin ETFs have not recorded impressive inflows during this
period, which shows their demand has slowed. For context, 6 out of
the 10 Spot Bitcoin ETFs (excluding GBTC) recorded zero inflows on
April 9, while 5 out of 10 recorded zero inflows on April 8.
BlackRock’s iShares Bitcoin Trust (IBIT) also recorded a relatively
low inflow of $21.3 million that day. At the time of writing,
Bitcoin is trading at around $69,300, down over 2% in the last 24
hours, according to data from CoinMarketCap. BTC price loses
$70,000 | Source: BTCUSD on Tradingview.com Featured image from
Vietnam Insider, chart from Tradingview.com
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