Bitcoin drops to $60,000 as investors worry about Fed rates

Bitcoin value continues to fall by last night Bitcoin falls below $60,000 for the first time since May 3, 2024

Data from Coin Metrics found that the price of Bitcoin fell 7% yesterday (June 24, 2024) to $59,562.54, and is down nearly 11% in the past week. Since the beginning of June, the price of Bitcoin has reached $71,000 just a short time before falling about 10% so far.

Cryptocurrency investment products saw outflows for the second week in a row. Trading volumes were the lowest globally since the launch of US bitcoin ETFs in January, according to data from CoinShares.

James Butterville, head of research at CoinShares, told CNBC that over the past two weeks, cryptocurrency ETFs have seen total outflows of $1.2 billion. This follows the recent FOMC meeting where asset outflows occurred. From the perspective of lower interest rates impacting confidence in cryptocurrencies

The Fed said it would like to see lower inflation numbers. Before the tightening of interest rates, if the inflation rate decreases, crypto prices may rise, but if the inflation rate increases, the price of cryptocurrencies may decrease further.

Eleanor Gaywood, head of strategy at Coincover, said market concerns often arise before the PCE index is announced. This is the Fed's preferred measure of inflation, expected on Friday, and is also a sign of a possible rate cut in September. It may calm investors and stabilize the price of Bitcoin.

Meanwhile, CryptoQuant predicted last week that Bitcoin could return to the $60,000 level. After falling below the key support level at $65,800. Due to lack of upward momentum

As CryptoQuant shows, investors have been reducing their holdings since Bitcoin reached the $70,000 level. At the end of May and did not start buying again

Investors and analysts are confident that cryptocurrencies will recover and set new records this year, with Bitwise Asset Management Analyst Ryan Rasmussen describing the price action as “choppy” and based on long-term investment theory. Bitcoin has rarely been more attractive than it is now.

Today (June 25, 2024 at 12:10 pm), the value of Bitcoin has returned to touch $61,286.46.

Origin CNBC, Binance

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