Bitcoin Its price gave some signals about the course of the crypto market with its decline throughout the week. While BTC dropped to around $57,500, its market value is around $1.13 trillion.
On the weekly chart, Bitcoin price It continued its losses in double digits. As Koinfinans.com reported, investors now expect a decline towards $50,000. While the performance in April already includes a significant decline of 16%, the overall picture is bad.
Some investors closely monitor Bitcoin movements to gauge changes in liquidity dynamics that may affect other assets. BTC has fallen in recent weeks due to signals from the Federal Reserve that interest rates will remain high for an extended period of time. This stance tightened financial conditions, increasing Treasury yields and the value of the dollar.
In its latest decision, the FOMC chose to keep US interest rates in the range of 5.25% to 5.50% since July 2023. Many people were expecting a rate cut from the Fed on May 1. This affects stock market valuations and therefore cryptocurrency It could benefit their units.
However, Jerome Powell stated that the Fed intends to keep interest rates steady until inflation falls to its 2% target level. ByteTree Asset Management Chief Investment Officer Charlie Morris wrote in a note to investors.
Bitcoin is our favorite canary. It warns of future problems in financial markets, but we can be sure it will return at some point. The recent strength in the US dollar may indicate that the market will tighten.
Weekly Record for Bitcoin ETF Outflows: Is It the End of the Road?
The launch of spot Bitcoin and Ethereum ETFs in Hong Kong has created some excitement. However, the trend in the US market has been largely downward. On Wednesday, US spot BTC ETFs experienced massive outflows of $560 million. BlakcRock’s IBIT witnessed its first exit since its inception. This shows that interest in ETFs is decreasing.
