Bitcoin traded at $61,000 on July 3 after the US inflation outlook worsened.
Fed Chairman Powell postpones rate cut
Data from Cointelegraph Markets Pro Trading View It showed that BTC price is gradually recovering from a 2% daily close drop.
This exacerbated the existing decline, resulting in a local low of $60,561 on Bitstamp. It wiped out the weekend’s gains.
The mood appeared to worsen after Federal Reserve Chairman Jerome Powell spoke about the economy and monetary policy at an event in Portugal.
He explained that the Fed needs to become more confident that conditions are right to cut interest rates, a key move crypto and risk asset bulls are keeping an eye on.
“We just want to understand that the levels we’re seeing right now accurately represent the real picture of underlying inflation,” he said. Quote According to Reuters and other news agencies.
The market has seen a slight decline in the likelihood of a rate cut at the September Federal Open Market Committee (FOMC) meeting, which remains at around 65% at the time of writing. data From CME Group’s FedWatch tool.
“It is clear the Fed will continue its ‘meeting-by-meeting’ approach,” trading information site Kobeisi Letter said in a post. response About X.
“The market is expecting two rate cuts this year, but the Fed’s latest guidance suggests one cut is on the way. The next few months will be crucial.”
Bitcoin’s hash rate drop could cause a “healthy delayed correction”
Bitcoin market participants watched in frustration as BTC/USD fell back to the bottom of an all-too-familiar range.
Related: Was the sub-$60,000 drop a bear trap? Five things to know about Bitcoin this week
Popular trader Skew pointed to liquidity manipulation through order “spoofing” on exchanges, with the latest case involving the addition and removal of resistance levels multiple times.
He added that spot demand on the world’s largest exchange, Binance, was “below” $60,000 on the same day.
others I got it. Bitcoin reportedly filled the latest “gap” in CME futures created by the weekend rally.
For Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, the latest BTC price volatility was a cause for concern.
He said the market is in progress. Surrender A phenomenon among miners Cointelegraph recently reported:
“Prices have yet to reflect the disappearance of on-chain,” he said. Warned X number of followers.
“It doesn’t have to be that way. Time heals all wounds, but Bitcoin is not patient. If we’re lucky, the price will stabilize between $60,000-$70,000 for up to two months, but if not, we’ll spit and get a long-overdue healthy correction.”
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
