HomeBitcoin NewsBitcoin drops by 3.7% to $66,870; discover the reasons behind its decline

Bitcoin drops by 3.7% to $66,870; discover the reasons behind its decline

Bitcoin Price Volatility Ahead of US Inflation Data and Federal Reserve Decision

The world’s biggest cryptocurrency, Bitcoin, experienced a significant drop of 3.78% to $66,817 on Tuesday, reflecting trader anxiety ahead of key events such as the release of US inflation data and the Federal Reserve’s monetary policy decision. This decline comes after Bitcoin reached a record high of $73,798 in March but has struggled to maintain those levels since then.

The upcoming inflation data and the Federal Reserve’s outlook on Wednesday are expected to impact the cryptocurrency market, with concerns that interest rates may remain elevated for an extended period. This challenging environment for speculative assets like cryptocurrency has led to a decrease in Bitcoin’s value.

According to experts, the recent strong US employment report, which revealed the addition of 272,000 jobs in May, has also contributed to the sell-off in the stock market futures and a surge in Treasury yields. This, in turn, has pressured Bitcoin to fall sharply from a two-month high.

Furthermore, regulatory uncertainty following the European Parliament elections has added to the downward pressure on Bitcoin’s price. The election results will influence the implementation of the MiCA regulations and shape EU policy towards cryptocurrencies.

Despite the current bearish sentiment in the market, experts believe that crypto demand will remain robust in the near term. Institutional interest in cryptocurrencies continues to be strong, with consistent inflows into Bitcoin spot ETFs. Traders and investors are adopting a more conservative approach and booking short-term profits, while continued volatility is expected in the crypto market over the coming weeks due to significant global developments.

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