⛔⛔The reason for the decline in Bitcoin and altcoins has been revealed
Cryptocurrencies, especially #BTC continue with declines into the new week. The number one cryptocurrency retreated to $ 64,782 today. Yesterday, the price was over 71 thousand dollars. Why did Bitcoin fall?
The main reason for the decline in Bitcoin is related to Fed expectations. Yesterday, the US ISM manufacturing index exceeded forecasts and was 50.3 in March, up 2.5 points from the previous month. Thus, the manufacturing index experienced growth for the first time after a Dec of 1.5 years.
The strong ISM data has raised expectations that the American central bank may refrain from cutting rates in June. The yield on 10-year U.S. Treasury bonds also rose to 4.4 percent, reaching its highest level since November 2023.
Expectations about the Fed's monetary policy this year have changed in the market. The probability of a rate cut in June has fallen below 50 percent.
The resulting picture caused an escape from risky assets.
On the other hand, investments in spot Bitcoin ETFs have also decreased. Yesterday, ETFs posted a deficit of $ 85 million. The improvement seen in ETF investments last week has been replaced by outflows. The $300 million sale seen in the Grayscale ETF has also put pressure on the Bitcoin price.
Markets are now focused on Fed chairman Powell's statements to be made tomorrow and the PMI data to be reported for the non-manufacturing sector.
