WHY WHY this Sh** dropping?
The recent decline in Bitcoin prices can be attributed to several factors:
1. Federal Reserve Policies:
The Federal Reserve's recent decision to reduce the expected number of interest rate cuts this year from three to one has created a less favorable environment for riskier assets like cryptocurrencies. This policy change has increased the opportunity cost of holding Bitcoin, leading to decreased demand
2. ETF Outflows:
There have been significant outflows from U.S.-based spot Bitcoin ETFs, amounting to nearly $500 million since June 10. These outflows indicate a risk-off sentiment among investors, possibly due to broader economic uncertainties and the strengthening of the U.S. dollar
3. Market Dynamics:
Increased selling pressure from Bitcoin miners, who have been moving their holdings to exchanges, has contributed to the downward pressure on prices
Additionally, there has been a shift in investment focus towards altcoins, particularly following the U.S. Securities and Exchange Commission's decision to end its investigation into Ethereum. This shift has further reduced Bitcoin's market dominance.
4. Technical Factors:
Bitcoin's price movement is also influenced by technical trading patterns. The current decline is seen as part of a broader correction within a bull flag pattern, suggesting that the price could continue to drop in the short term before potentially rebounding.
These combined factors have created a challenging environment for Bitcoin, resulting in the recent price declines.