It's Big & Big #alert ABOUT $BTC Crash Update !!!
Why Bitcoin Price Dropped Today? When Will It Recover?
Bitcoin price falling to $56K triggered a broader crypto market selloff as traders book profits in anticipation of hawkish Fed and delay in rate cuts.
Bitcoin price is officially in a bear market as it is now down over 20% after falling for three consecutive days this week.
Investors pulled money out of the crypto market in anticipation of hawkish U.S. Federal Reserve retreat from three interest rate cuts this year.
Stagflation and sticky inflation concerns continue to mount amid no signs of slowing inflation and slow economic growth. The recent PCE data indicated persistent inflationary pressures and Q1 GDP growth of 1.6% showed stagflation.
Today’s Fed monetary policy decision and Chair Jerome Powell are crucial for the stock and crypto markets as investors brace for market crash jitters.
Bitcoin Price Falls Over 10% to $56K
BTC price fell over 10% in a day amid panic selling by retail investors after institutional investors considered rising risks to stay away from risk assets. Bitcoin currently changing hands at $57,000.
The 24-hour low and high are $56,555 and $62,121, respectively. Furthermore, the trading volume has increased by 70% in the last 24 hours.
Bitcoin is now down 22% from the all-time high of $73,803 in March, technically putting it in a bear market. But it is still up 35% year-to-date and double where it was this time last year due to large money inflow into spot Bitcoin exchange-traded funds (ETF) since January.
As demand wanes from spot Bitcoin ETF and investors didn’t see any factors for a recovery, they started booking profits, which triggered a broader crypto market selloff.
Macro Pressure Mounts
The US dollar index (DXY) rose to around 106.4 on Wednesday, marching again toward six-month highs as investors brace for key monetary policy decisions from the U.S.
Federal Reserve. The Fed is expected to keep interest rates unchanged amid strong US economic data and hot inflation.
