World's biggest cryptocurrency Bitcoin slid as much as 3.78 per cent to $66,817 on Tuesday reflecting trader anxiety ahead of the US inflation data release and the Federal Reserve's monetary policy decision.
Bitcoin reached a record high of $73,798 in March, boosted by inflows into dedicated US exchange-traded funds. However, it has struggled to achieve new highs since then. The upcoming inflation data and the Federal Reserve's outlook on Wednesday could reinforce concerns that interest rates will remain elevated for an extended period, creating a challenging environment for speculative assets like cryptocurrency.
“A recent batch of labor market figures exceeding expectations has cast doubt on the Federal Reserve's likelihood of cutting interest rates anytime soon. This shift in sentiment has dampened risk appetite, adversely impacting cryptocurrencies. Bitcoin's attempt to climb above $72K faltered, pulling back below $70K, without accelerating despite breaking downward resistance. Meanwhile, selling pressure remains subdued, indicating a market inclined towards buying,” said Rajagopal Menon, VP, WazirX.
Other than US inflation and Fed outlook, strong US employment report revealed that 272,000 jobs were added in May, significantly surpassing the forecast of 185,000. This strong jobs report, coupled with higher-than-expected wage growth, led to a sell-off in stock market futures and a surge in Treasury yields. The prospect of sustained higher interest rates pressured Bitcoin, causing it to fall sharply from a two-month high.
“Additionally, there have been significant outflows from U.S.-listed spot bitcoin exchange-traded funds (ETFs). The ETFs experienced a cumulative outflow of over $64 million, contributing to the downward pressure on the price. The regulatory uncertainty following the European Parliament elections has added pressure on Bitcoin's price. The election results will influence the implementation of the MiCA (Markets in Crypto Assets) regulations and shape EU policy towards crypto,” said Balaji Srihari, Business Head, CoinSwitch.
Where's bitcoin prices headed?
Experts believe that bearish sentiment, crypto demand to remain robust in the near term.
“The market's bearish sentiment stems from uncertainties about upcoming events and their potential economic impact. Despite the downturn, institutional interest in cryptocurrencies remains robust, as seen from consistent inflows into Bitcoin spot ETFs, with 19 consecutive days of net inflows till June 10th,” Menon added.
According to Minal Thukral, Head, Growth & Strategy, CoinDCX, traders and investors are following a more conservative and cautious approach for the time being and perhaps booking short term profits.
On the other hand, Srihari of CoinSwitch expects continued volatility in the crypto market over the coming weeks, given significant developments in the global market.
First Published:
11 Jun 2024, 09:32 PM IST
FAQs
World's biggest cryptocurrency Bitcoin slid as much as 3.78 per cent to $66,817 on Tuesday reflecting trader anxiety ahead of the US inflation data release and the Federal Reserve's monetary policy decision. Bitcoin reached a record high of $73,798 in March, boosted by inflows into dedicated US exchange-traded funds.
Why is the Bitcoin falling? ›
This downturn results from a series of adverse market events, including regulatory pressures and macroeconomic factors—the US macro data and the Japanese stock crash were the key reasons to note here.
What is happening with Bitcoin? ›
Bitcoin, ether (ETH) advanced 2%-3% over the past 24 hours on strong day for cryptos. BTC bottomed last week and should rise further based on daily cycles theory, according to chartist Bob Loukas.
What happened to the crypto market today? ›
The global cryptocurrency market cap today is $2.20 Trillion, a +1.98% change in the last 24 hours.
What causes Bitcoin to go up or down? ›
The three primary factors that drive crypto value are: supply and demand, market perception, and competition. Most cryptocurrencies implement mechanisms to limit supply and prevent inflation. Market perception is closely related to market value. The higher one's market perception, the more one is willing to pay for it.
Is Bitcoin a good investment? ›
The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble. As with other investments, it's important to hedge your portfolio.
Why did Bitcoin lose so much value? ›
Despite the long-term rise, Bitcoin has been dogged by periods where it's fallen precipitously. The most recent has been from November 2021 through 2022, when the prospect of rising interest rates and reduced liquidity in the financial markets sent Bitcoin's price much lower.
Why not to buy Bitcoin? ›
There are several risks associated with investing in cryptocurrency: loss of capital, government regulations, fraud and hacks. Loss of capital. Mark Hastings, partner at Quillon Law, warns that investors must tread carefully in crypto's unique financial environment or risk significant losses.
Who owns the most Bitcoin? ›
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
Is it safe to buy Bitcoin? ›
Crypto is also not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC), meaning you should only buy crypto with an amount you're willing to lose.
Top 10 Cryptos in 2024
Coin | Market Capitalization | Current Price |
---|
Ethereum (ETH) | $287.89 billion | $2,393 |
Binance Coin (BNB) | $73.99 billion | $507.14 |
Solana (SOL) | $62.45 million | $133.76 |
Ripple (XRP) | $30.62 billion | $0.54 |
6 more rowsSep 6, 2024
Which crypto to buy now? ›
5 Best Altcoin To Buy Now
- LuckHunter (LHUNT)
- BlockDAG (BDAG)
- Toncoin (TON)
- Solana (SOL)
- Sandbox (SAND)
What is the next big cryptocurrency? ›
EarthMeta (EMT) is considered the next big crypto to invest in. With its strategic focus on the metaverse, particularly through the creation of limited digital real estate, EarthMeta offers a unique investment opportunity.
What will $100 of Bitcoin be worth in 2030? ›
If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.
When should I sell my Bitcoin? ›
If you've reached or surpassed your investment targets, selling to realize those gains could be wise, especially if you believe the market is at a peak. Additionally, if you require significant capital for immediate expenses or want to reinvest in other opportunities, selling could provide that flexibility.
How much will 1 Bitcoin be worth in 2025? ›
Bitcoin (BTC) Price Prediction 2030
Year | Price |
---|
2025 | $ 63,501.28 |
2026 | $ 66,676.35 |
2027 | $ 70,010.17 |
2030 | $ 81,045.52 |
1 more row
Which crypto to buy today? ›
Top Cryptos
Name | Price | 24H High |
---|
USDC USD Coin | 86.02 | 86.02 |
XRP Ripple | 51.3990 | 51.3990 |
DOGE Dogecoin | 10.6306 | 10.6306 |
TON Toncoin | 637.201 | 637.201 |
37 more rows
What is Bitcoin halving? ›
The Bitcoin halving refers to an event that takes place about every four years and reduces the block reward by 50%. This lowers the supply of bitcoins entering the market, which increases scarcity and can act to raise its price if market conditions remain the same.
Why is the ETH dropping? ›
ETH's price has dropped sharply in the last two weeks, down almost 30%. Jump Crypto is mainly responsible for ETH's current downfall, as the firm has been liquidating hundreds of millions worth of ETH. Most cryptocurrencies are in the red, with BTC below US$57K.
How many bitcoins are there? ›
How Many Bitcoins Are There Now in Circulation?
Total BTC in Existence | 19,816,656.25 |
---|
Bitcoins Left to Be Mined | 1,183,343.8 |
% of Bitcoins Issued | 94.365% |
New Bitcoins per Day | 900 |
Mined Bitcoin Blocks | 860,665 |