BTC prices have dropped below $70,000 once again, contrary to the expectations of many who believed the price might be ready to surpass $73,000 to reach a new all-time high. With many feeling disappointed once again, mentioning some reasons why BTC prices could decrease is worth noting.
Analyst Ash Crypto provides insights into this situation. He notes four main reasons affecting the decline in Bitcoin prices:
The recent conflict between Iran and Israel has escalated, with reports indicating Iran's plan to attack Israel from Iraqi territory. As Ash Crypto emphasizes, geopolitical tensions and wars are generally negative for Bitcoin and the cryptocurrency market as a whole.
Earnings reports from major tech companies also play a role. Although Microsoft and Meta exceeded expectations, they reported weaker-than-expected results due to rising AI costs, leading to a sell-off of their stocks. This downturn affects the entire market, including cryptocurrency.
Rising bond yields are another factor. The 10-year bond is currently trading above 4.3%, which historically reduces demand for stocks, causing investors to reassess their positions in riskier assets like Bitcoin.
Additionally, the core Personal Consumption Expenditures (PCE) index has slightly risen above 2.7%. This increase could prompt the Federal Reserve to adopt a more hawkish stance, further impacting investor sentiment.
Ash Crypto believes that these factors could lead to a temporary decline. He draws a parallel with previous market behavior, suggesting that although this month started with a drop, it could end with Bitcoin surpassing $80,000, similar to trends seen in the past.