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- Cryptocurrencies
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- Industry
- Geography
The bitcoin price dropped as the possibility of rate cuts disappeared, the American Dollar Index strengthened, and geopolitical conflicts aggravated the instability in the international markets. The Bitcoin price increased 1.96% in the past 24 hours, now changing hands for US$62,484. Cryptocurrency is a digital payment method that mimics traditional currencies and uses blockchain technology to record transactions but has no connections with a single central bank. The price of specific cryptocurrencies makes its headline ET reports The Block's Price Page.
BTC prices started to decline after US Federal Reserve chair Jerome Powell announced that holding the interest rates would be a more likely case of policy rather than decreasing them. Powell indicated in the Washington forum's talk that, not possibly over the next relatively short period, the U.S. Federal Reserve will not make it to the 2% goal, which is an inflation target level. According to Reuters, "Today, with a more solid labor force and the process of inflation, maintaining restrictive policy longer is perfect. And, data and the outlook should dictate like the judgment."
Apart from the other non-rate cut-supported investors, when the probability of the rate cut was falling, trading volumes for bitcoin ETPs fell as well. A data dashboard from thelastblock.com reveals that bitcoin spot ETF volumes dropped from their significance crest in March.
According to the Trading View index, the US Dollar, which reflects its strength relative to other currencies worldwide, has grown by approximately 4.38% since January and hit a six-month high of 106.372 at the start of the week. This is the dollar's most robust five-day rise since February 2023, says the report.
With the improvement in the DXY coupled with investors' anticipation of future rate hikes, it becomes more favorable to have the fund grow in the bond market. This is considered an excellent impediment for investment in the states that took place in risky assets like Bitcoin, as a stronger dollar usually increases the demand for bonds and term deposits, thereby increasing the demand for the dollar in total.
Besides the above, considerable geopolitical disputes, including the rise of turmoil in the Midwest, have made investors to be careful.
Bitcoins always displayed a specific choppy behavior before the halving of the block reward, as indicated by Stratos's founder, Rennick Palley. He identifies headwinds for Bitcoin in the coming periods, as the market's sell-off might be expected not only from the crypto sector but also from equities markets due to worries over persisting inflation and the sporadic rate of reduction this year.
Palley comments that bitcoin could trade somehow together with risk assets in the short term; however, he says that in the long term, an explosive inflation environment would yield positive results for the asset. In such a way, long-term higher inflation is likely to be a good place for Bitcoin, which is supposed to demand money to print as much money as possible any farther from the Fed and other central banks across the world.
Bitcoin's support level is US$60,672, and its resistance level is US$62716. The Relative Strength Index (RSI) is 60.17. The value of the 20 SMA is 61694. The MACD indicates Bitcoin's bullish trend in the crypto market.
