Bitcoin’s value has begun to decrease, undoing earlier increases, as recent macroeconomic indicators suggest that broader economic factors are currently the primary influences. With the Producer Price Index (PPI), Consumer Price Index (CPI), and a speech from Federal Reserve Chair Jerome Powell slated for this week, it’s anticipated that Bitcoin’s value will continue to face downward pressure and encounter fluctuations.
The most recent dip in Bitcoin’s value can be attributed to data on US consumer inflation expectations. Expectations for inflation over the coming year reached 3.3%, the highest level since November, up from 3% in each of the previous four months. Additionally, expectations for inflation over a five-year horizon rose to 2.8% from 2.6%.
While hotter inflation remains a worry for members of the FOMC, Federal Reserve Vice Chairman Phillip Jefferson and the Fed’s Loretta Mester have offered differing perspectives on inflation and the possibility of rate cuts.
According to a recent report by CoinGape, consumer sentiment data from the University of Michigan has led to a drop in the price of BTC, falling below $61,000. This was attributed to inflation expectations for the upcoming year climbing to 3.5%, while the five-year inflation outlook increased from 3.0% to 3.1%.
Data from Coinglass indicates that over $212 million worth of assets were liquidated in the cryptocurrency market within the past day. Long positions accounted for $132 million of this total, with approximately $80 million attributed to short positions. The majority of these liquidations, amounting to over $50 million, occurred within the last hour.
In this period, more than 90,000 traders experienced liquidations. Notably, the largest single liquidation order transpired on the Binance exchange, involving the sale of ETH for BTC valued at $3.98 million. This move by either an investor or a whale presents an intriguing development.
In the past 24 hours, the price of BTC has decreased by 2.80% to $61,248.17, with its low and high points reaching $61,316.94 and $63,422.66, respectively. There’s a likelihood that the prices will maintain their downward momentum and dip towards the support levels around $61,000.
According to analyst Ali Martinez, Bitcoin faces resistance from the 200-EMA on the 4-hour chart, suggesting a potential pullback towards $62,000. Additionally, the TD Sequential indicator signals a sell-off. However, if the candlestick manages to close above $64,000, BTC might resume its upward trajectory.
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