Core items:
- Bitcoin, trading at $66,000, has plunged over 5% in the last 24 hours.
- The key factors driving the bearish market are falling demand for ETFs and weakening expectations of the Fed's interest rate cut.
- The crypto market appears to be “weak” over the last 12 hours, triggered by the latest US economic data.
Bitcoin has been negatively impacted by bearish bets on the Federal Reserve's looser monetary policy and falling demand for Bitcoin ETFs. The cryptocurrency has fallen to a weekly low with a decline of more than 5% in the last 24 hours.
While inflationary pressures in the US have caused expectations of Fed rate cuts to fade, which in turn triggered US dollar growth, the crypto sector is reportedly hurting.
According to a Bloomberg report, Stefan von Haenisch, head of trading at OSL SG Pte., explained that the prevailing pessimism about possible interest rate cuts has severely affected the crypto space, “where there was a sell-off at the beginning of the week – no.” The sector is not affected by this, especially those whose prices have exceeded those of Bitcoin in the last six months, for example memes.”
After the launch of the Spot Bitcoin ETF, Bitcoin proved to be more stable than any other cryptocurrency. As demand for Bitcoin ETFs increased, Bitcoin rose from $46,000 to a remarkable high of $69,000, surpassing the cryptocurrency's previous all-time high (ATH). On March 14, Bitcoin even hit a new high of around $73,700, indicating a possible upward rally. However, in the last few days, Bitcoin, along with many other altcoins and memecoins, showed a downward trend, causing concern among investors. At the time of publication, Bitcoin is trading at $66,612, with a daily decline of 5.56% and a weekly decline of 5.39%. According to Richard Galvin, co-founder of DACM, the entire crypto market looked “weak” in the last 12 hours, triggered by the latest US economic data.
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