Bitcoin's recent decline is primarily attributed to a combination of factors:
👉👉 Macroeconomic Concerns
1. Recession Fears: Weaker-than-expected economic data, particularly in the US, has intensified concerns about a potential recession. Investors often move away from riskier assets like Bitcoin during economic downturns.
2. Interest Rate Hikes: Central banks, including the Federal Reserve, have been raising interest rates to combat inflation. This reduces the attractiveness of riskier assets like Bitcoin.
👉👉 Market Sentiment
1. Profit-Taking: After a significant rally early this year, some investors might still be taking profits, contributing to downward pressure on the price.
2. Risk-Off Appetite: The overall market sentiment has turned cautious, with investors opting for safer assets, leading to a sell-off in Bitcoin.
👉👉 Regulatory Uncertainty
Ongoing regulatory scrutiny of the cryptocurrency industry can create uncertainty and investor hesitancy.
👉👉 Technical Factors
Bitcoin's price movements can also be influenced by technical factors like resistance levels, support levels, and trading patterns.
👉👉 Political Factors
The ongoing US presidential pre-electoral event has been telling on BTC. The swing highs and lows and multiple consolidations.
Regardless of all these, we still believe that BTC will retain its momentum to create a new ATH.
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