Bitcoin prices declined due to lower demand for dedicated US exchange-traded funds and lower forecasts of a weaker Federal Reserve monetary policy. Bitcoin fell by 5.3% before recovering somewhat to $66,735. Tokens popular among the meme community, such as Pepe and dogwifhat, also saw a decline.
The year 2024 is witnessing a dip due to the ongoing US price scenario, allowing investors to minimise wagering on federal interest rate reductions. This results in higher Treasury yields as well as the dollar.
According to Stefan von Haenisch, Head of Trading at OSL SG Pte, this new perspective on the Fed looks to be influencing the bitcoin business. In reality, every market is being affected, particularly since meme prices surpassed those of Bitcoin six months ago.
Bitcoin has decreased by about 10% after peaking at $73,798. The rush of daily inflows into spot Bitcoin ETFs has begun to slow. This is having an influence on the most valuable digital asset.
According to Richard Galvin, Co-Founder of DACM, the crypto arena has lost some of its strength during the last day as a result of the most recent economic statistics.
The statistics showed that the US manufacturing industry expanded for the first time since September 2022, despite increased input costs. After the report was released, the level of Fed easing priced in favour of swap contracts dropped by 65 points.
There is conjecture that the quantity of new Bitcoin tokens will be cut in half this month. This is a four-year phenomenon that some traders view as a prop for the bitcoin market. Others do not expect the token to appreciate considerably very soon.