The BTC price is facing renewed selling pressure, with prices sliding to a multi-week low amid heightened volatility. The move followed a sharp reversal from recent highs and reflected weaker risk sentiment driven by macroeconomic signals, geopolitical developments, and heavy liquidation activity across crypto markets. BTC Price Hits Six-Week Low on Geopolitical and Fed Pressure
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]]>Bitcoin, Ethereum Move Sideways, Dogecoin Falls Amid Jerome Powell’s Hawkish Tone On Rate Cuts: Analyst Says Dip Temporary Before BTC Highs Benzinga
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Cryptocurrencies Bitcoin, XRP, and Shiba Inu are rebounding after the Fed’s hawkish pivot USA TODAY
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Cryptocurrencies Bitcoin, XRP, and Shiba Inu Are Rebounding After the Fed’s Hawkish Pivot MSN
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The latest report from CoinShares shows that the digital asset investment products experienced outflows totaling $600 million during the last week. This was the outcome of the more hawkish-than-expected FOMC meeting.
Bitcoin ETF Outflow Skyrocketed Last Week
Outflows from the US spot Bitcoin ETFs contributed the most to a majority of the outflows last week. Grayscale’s GBTC ETF saw the largest outflows, with $274.3 million leaving the higher-fee fund. This was followed by Ark Invest’s ARKB and Fidelity’s FBTC, which experienced net outflows of $149.7 million and $146.3 million, respectively.
On the other hand, BlackRock’s IBIT was the only spot Bitcoin ETF registered net inflows last week, recording inflows of $41.6 million last week. As a result, the total net inflows in spot Bitcoin ETFs since inception dropped to $15.1 billion.
Before the last week, the spot Bitcoin ETFs recorded 19 consecutive days of heavy inflows bringing in more than $4 billion during this period. However, this streak of inflows ended last Monday, when the ETFs recorded $64.9 million in net outflows. In the three days in and around the FOMC meeting, the spot Bitcoin ETFs saw outflows to the tune of $200 million per day.
BTC Led the Total Outflows From Global Investment Products
Outflows totaling $621 million were exclusively directed towards Bitcoin, reflecting prevailing bearish sentiment. Additionally, there were inflows of $1.8 million into short Bitcoin positions. As a result, the Bitcoin price ended 7% negative during the last week.
“These outflows and recent price sell-off saw total assets under management (AuM) fall from above US$100bn to US$94bn over the week,” wrote James Butterfill in his CoinShares report.
Also, the trading volumes for the last week dropped to US$11bn, in comparison to the average $22 billion of weekly trading volume this year. However, this is still well above the $2 billion a week registered last year.
In terms of regional trends, the majority of outflows amounting to $565 million were observed in the US. However, negative sentiment was not limited to the US alone, as Canada, Switzerland, and Sweden also experienced outflows of $15 million, $24 million, and $15 million, respectively. In contrast, Germany saw inflows of $17 million, marking an exception to the overall trend of outflows.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
U.S. Federal Reserve Chair Jerome Powell’s speech reflected slightly hawkish comments on restrictive monetary policy and interest rate cuts amid ongoing inflationary pressures and a strong labor market. The progress toward bringing inflation back down to its 2% target this year has stalled as some raised stagflation concerns, which were denied by Powell again.
He said the US economy remained resilient amid a strong labor market. Speaking about inflation, he hinted at concerns over the hotter inflation in recent months causing the Fed to lose confidence in earlier rate cuts this year.
The U.S. Bureau of Labor Statistics released the PPI inflation data for April today, which comes in hot. The monthly PPI increased 0.5% against the expected 0.3%. The monthly core PPI was up 0.5%, much higher than forecasts of 0.2%. The annual PPI was steady at 2.2% and the annual core PPI rate went up to 2.4% from a downwardly revised 2.1%.
Jerome Powell said the Fed will continue to analyze further quarter economic data and fight inflation to bring to the 2% target, denying any rate hike. Other Fed officials were hawkish on rate cuts and commented on lesser rate cuts this year.
Crypto and Stock Market Reactions
Crypto and stock markets remain under pressure as traders await key CPI inflation data due Wednesday. The market expects a fall in annual CPI inflation to 3.4% from 3.5%.
The US stock market has opened flat as traders digest fresh PPI data and wait for CPI numbers for further guidance on market trends. CME FedWatch Tool shows a 49% probability of 25 bps rate cuts starting September, with further rate cuts expected in November and December.
The new inflation data caused US dollar index (DXY) to drop to 105 and the US 10-year Treasury yield also fell 4.471%. As Bitcoin moves opposite to DXY and Treasury yields, a rise in both has caused a downfall in Bitcoin price to $60k, triggering a crypto market selloff.
BTC price fell nearly 3% today but rebound suddenly, with the price currently trading near $62,000 again. The 24-hour low and high are $61,156 and $63,422, respectively. However, the trading volume has increased by 11% in over the last 24 hours, indicating a rise in interest among traders.
Altcoins including Ethereum, BNB, Solana, Toncoin fell 2-8% in the last 24 hours amid PPI inflation and Fed Chair Powell’s speech.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin, Ethereum, Dogecoin Surge Despite Hawkish Remarks From Fed President—Analysts Predict King Could Benzinga
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The Federal Reserve decided to leave interest rates unchanged.
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It also signaled that it will deliver another rate hike later this year.
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Shiba Memu has defied gravity by raising over $3.1 million.
Stocks and cryptocurrencies came under intense pressure this week as the Federal Reserve pointed to higher interest rates in the coming months. The Dow Jones, Nasdaq 100, and S&P 500 slipped for four straight days. Similarly, Bitcoin dropped to $26,000, down from this month’s high of almost $28,000.
Federal Reserve decision
The main catalyst for the performance of stocks, cryptocurrencies and bonds was the latest Federal Reserve interest rate decision. In it, the bank decided to leave interest rates unchanged between 3.50% and 3.25%. At the same time, the committee hinted that it was still concerned about inflation.
As a result, the dot plot pointed to another 0.25% hike by the end of the year. If this happens, interest rates will peak at 5.75%, the highest level in more than 23 years. The Fed is right to be worried about inflation.
Recent data shows that the price of crude oil has continued soaring. Brent, the international benchmark, rose to $95 and most analysts believe that it is just a matter of time before it hits $100.
The price of other agricultural commodities is also rising. Live cattle has jumped by 20% this year and is sitting at the highest point on record. Cocoa, which is used to make chocolate, has soared because of low yields in Ghana and Ivory Coast. Orange juice has also soared.
Therefore, there is a likelihood that the Federal Reserve will continue rising rates in the coming months. Besides, the UAW workers are on a major strike while a long traffic jam is happening at the Panama Canal.
Shiba Memu is thriving despite risks
The actions of the Fed risks plunging the American economy into a recession. For one, the M2 money supply in the economy has dropped by more than $2 trillion in the past few months. Delinquency rates have also jumped while mortgage rates are nearing 8%.
Still, investors are still interested in Shiba Memu, the upcoming meme coin that has some AI features. Data in its website (use this link) shows that the token has already raised over $3.1 million from investors. This makes it one of the biggest winners this year
For starters, Shiba Memu aims to be a better version of Shiba Inu, the giant meme coin. It will do that by incorporating AI features that will help it in self-marketing. Therefore, if it succeeds, Shiba Memu will likely become a bigger deal than other meme coins like Dogelon Mars and Pepe, which have no major utility.
Bitcoin, Ethereum, Dogecoin Trade Mixed As Investors Digest Powell’s Hawkish Remarks: Analyst Warning On Benzinga
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US Federal Reserve Chair Jerome Powell reiterates the need to raise interest rates after a hawkish pause in June. A strong labor market and inflation remaining above the FOMC target rate will compel the Federal Reserve to continue its rate hike strategy. The ADP employment report on Thursday caused a sudden fall in Bitcoin, Ethereum, and other altcoins price. Traders now brace for nonfarm payrolls and unemployment rate data due today as the market forecast of 225K and 3.6% points to a tighter US market.
Meanwhile, European Central Bank President Christine Lagarde said inflation is still higher than the 2% target and ECB can continue to hike interest rates in 2024. The inflation rate is 5.5% currently for the EU. In addition, she pointed out that economic growth in the region can pick pace in 2024-2025, estimating growth at around 0.9% in 2023.
The macro outlook remains challenging for Bitcoin, with treasury yields rising rapidly and volatility returning to the crypto and stock markets. The CME FedWatch tool indicates a nearly 90% probability of a 25 bps rate hike during the July FOMC meeting.
Also Read: Bitcoin Price Is Falling While Whales Grow – What Does It Mean for BTC at $30k?
Bitcoin Price to Hit $35000?
The crypto market fell after the US jobs data on Thursday and analysts expect a similar action on Friday as US labor remains tight. JPMorgan argues SEC approval of spot Bitcoin ETF to unlikely benefit crypto market, but BlackRock CEO Larry Fink thinks Bitcoin ETF can democratize crypto and revolutionize finance.
Bitcoin ETF applicants meeting the US SEC next week to discuss approval, required rule changes, and other crucial aspects.
Crypto analysts Michael van de Poppe and Rekt Capital pointed out that Bitcoin dominance pull back in the short term after hitting higher historically. It will bring a recovery in altcoins. In fact, crypto asset inflows for two consecutive weeks and the monthly MACD turning green indicate a positive outlook for Bitcoin price.
BTC price trades at $30142, with 24-hour low and high of $29777 and $31269, respectively. ETH price currently trades at $1860, down 4% in the past 24 hours. Read more on the crypto market outlook for H2.
Mean reversion forces now dominating #Bitcoin price action.
Sideways or down is easier than up.
Fundamentals suggest we need a phase of cool down to reset things. pic.twitter.com/N7USKlwG3d
— Willy Woo (@woonomic) July 7, 2023
Also Read: LUNC Developer Edward Kim Unveils Terra Luna Classic’s AI Chain “Block Entropy”
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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