bitcoin has experienced a price drop again since briefly rising above the $72,000 mark on April 8. This price drop is believed to be due to a couple of factors, which certainly present a bearish outlook for the bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>flagship crypto.
Inflation data expected to arrive hot
Consumer Price Index (CPI) data for March is scheduled to be released on April 10. Some market experts predict that the report will show an increase in general inflation. This could lead the Federal Reserve to take a bitcoin-recovers-on-fed-hike/” rel=”nofollow”>tough stance on interest rates, negatively impacting the price of bitcoin and the crypto market in general.
This would explain why the price of bitcoin has dropped lately as cryptocurrency investors stay on the sidelines ahead of the bitcoin–crypto-see-unexpected-boost/” rel=”nofollow”>CPI report. However, if inflation numbers are favorable, this could restore investor confidence in the economic situation and provide a much-needed bullish outlook for the cryptocurrency market.
Likewise, considering that the inflation data for January and February exceeded expectations, it is necessary to highlight what last month's data that exceeded expectations could mean in the long term. Until now, crypto-in-trouble/” rel=”nofollow”>the Federal Reserve has continued to keep interest rates steady at around 5.3%, and there was even optimism earlier in the year that there could be rate cuts at some point this year.
However, with inflation remaining well above the Central Bank's target of 2%, there is a growing sense that they could be forced to take drastic action at some point. Ultimately, this is not good for the price of bitcoin, especially as different crypto analysts gave bullish predictions partly based on their assumption that there would be several rate cuts this year.
bitcoin Spot ETFs Are Back in the Red
He bitcoin-etfs-now-hold-nearly-of-btc/” rel=”nofollow”>bitcoin Spot ETF They have also contributed to bitcoin's recent crash. These investment funds experienced a net outflow on April 8 and 9, causing a significant drop in bitcoin in the market. Specifically, these departures came from the bitcoin-reaches-largest-discount-ever/” rel=”nofollow”>Grayscale bitcoin Trust (GBTC)which recorded an output of x.com/FarsideUK/status/1777542923363430592″ rel=”nofollow”>$303.3 million and x.com/FarsideUK/status/1777905671461122453″ rel=”nofollow”>$154.9 million on April 8 and 9, respectively.
Meanwhile, the bitcoin-whale-profits-mixed-spot-btc-etf-flows/” rel=”nofollow”>Other bitcoin Spot ETFs They have not recorded impressive inflows during this period, showing that their demand has slowed down. For context, 6 out of 10 bitcoin spot ETFs (excluding GBTC) recorded zero inflows on April 9, while 5 out of 10 recorded zero inflows on April 8. bitcoin-etf-broadens-reach/” rel=”nofollow”>iShares bitcoin Trust (IBIT) by BlackRock It also posted a relatively low inflow of $21.3 million that day.
At the time of writing, bitcoin is trading at around $69,300, down more than 2% in the last 24 hours, according to data from CoinMarketCap.
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btc price loses $70,000 | Source: BTCUSD on Tradingview.com
Featured image from Vietnam Insider, chart from Tradingview.com
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