The cryptocurrency market took a bit of a tumble recently, with its total value dropping over 3 percent to around $2.59 trillion. Bitcoin, the big player, fell below the $68,000 mark, settling around $67,600 on Tuesday. But that’s not all. In the past day alone, the crypto derivatives market saw losses of a staggering $164 million, with long traders bearing the brunt of over $140 million.
With the market feeling shaky, many cryptocurrency traders found solace in stablecoins. Reports from crypto experts show that Tether USDT, with a daily trading volume averaging around $47 billion, surpassed both Bitcoin and Ethereum combined.
What’s causing the jitters, and where is Bitcoin headed next? Dive deeper to find out!
All eyes are on the United States Bureau of Labor Statistics, set to release the Consumer Price Index (CPI) data on Wednesday. Plus, the United States Federal Reserve will unveil its FOMC statement, economic projections, and interest rates on the same day, adding to the tension.
While expectations suggest the US interest rates will stay put, recent moves by the European Central Bank (ECB) and the Bank of Canada to lower rates have stirred the pot. Given past instances where FOMC data shook up the crypto world, many traders are playing it safe.
Bitcoin has been facing a tough time breaking past the $72,000 resistance level for the past four months, despite considerable interest from big investors. Looking at it technically, there are signs that Bitcoin’s price might be forming a classic head and shoulders (H&S) pattern on a weekly basis.
Adding to the pressure is the bearish weekly divergence spotted on the Relative Strength Index (RSI), painting a challenging picture for Bitcoin in the coming months. Still, Bitcoin supporters remain confident, citing recent halving events, clearer crypto rules, and growing mass adoption.
After enjoying over two weeks of positive cash flow, spot Bitcoin ETFs in the United States, holding more than 1 million coins, faced a net outflow on Monday.
Data from these ETFs shows that BlackRock only saw a modest cash flow of about $6.3 million on Monday, signaling a shift in investor sentiment.
Hit us with your predictions! Where do you see the Bitcoin price headed in the next few months?
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