3 Reasons Likely To Trigger Bitcoin Price Pre-Halving Plunge To $60,000

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Solana fell by 6%, now priced at $165; Ethereum dropped by 5.5%, trading at $3,440; and XRP decreased by 4.7%, reaching $0.6.

In simpler terms, this examination intends to explore the significant elements potentially leading to a more substantial drop in Bitcoin‘s price within the upcoming two weeks.

1. Hotter Than Expected Inflation Leaves Bitcoin Price Vulnerable To Volatility

If the pessimistic response to the US inflation rate of over 3.5% as indicated by the Consumer Price Index (CPI) report negatively impacts investor sentiment, Bitcoin’s price may surge towards $60,000 before the halving event scheduled for around April 17.

Inflation surprised market experts by coming in higher than anticipated at 3.4%, making the previous month’s rate of 3.2% seem even smaller. The inflation data from March played a crucial role in investors’ predictions about potential Federal Reserve interest rate reductions throughout the year.

Because inflation continues to climb at an unrelenting pace, economists are now considering potential rate cuts as late as June through September, as suggested in a report on US consumer price index by CoinGape. The target 2% inflation rate set by the Fed appears increasingly elusive.

In addition, it’s expected that interest rates will stay high during the next few months, leading to higher borrowing costs for both businesses and individuals. Consequently, disposable income and investment budgets for speculative assets such as Bitcoin, cryptocurrencies, and stocks are likely to contract.

In March, inflation went up by 0.4%, based on seasonal adjustments. However, if we look back over the past year without considering seasonal fluctuations, we see that the Consumer Price Index had risen by 3.5%.

2. Bitcoin ETF Uptake Slows As Net Outflows Soar

Bitcoins off to a great beginning in ETF form, but have faced challenges maintaining a positive perspective lately. As per recent Bitcoin price predictions on Tuesday, there are ongoing net withdrawals from this market. SoSoValue indicates that the daily total amount withdrawn was approximately $19.48 million as of April 9th.

3 Reasons Likely To Trigger Bitcoin Price Pre-Halving Plunge To $60,000

Grayscale recorded the largest net single-day outflow of $154.92 million while BlackRock led in daily net inflow volume with $128.67 million. So far, the cumulative total net inflow volume stands at $12.37 billion as highlighted by crypto reporter Wu Blockchain.

April 9 saw a total withdrawal of $19.48 million from Bitcoin spot ETFs collectively. Notably, Grayscale ETF (GBTC) recorded a significant daily outflow of approximately $154 million, while BlackRock ETF (IBIT) experienced an inflow of around $128 million on the same day.
— Wu Blockchain (@WuBlockchain) April 10, 2024

In February and March, there was a noticeable rise in investments flowing into Bitcoin ETFs. This influx led to a notable increase in the desire for Bitcoin. Adding to this, the optimistic market atmosphere kept crypto prices high. Bitcoin’s price reached an unprecedented peak of $73,803 according to CoinGecko data.

3. Weakening Technical Structure

Bitcoin’s price is looking for stability around $67,500 following the market turbulence brought about by the latest CPI data release. The digital currency is currently below two important moving averages – the 50-day Exponential Moving Average (EMA) and the 20-day EMA, represented by red and blue lines on the graph respectively. This alignment suggests that significant price decreases could occur during the upcoming week.

3 Reasons Likely To Trigger Bitcoin Price Pre-Halving Plunge To $60,000

The RSI, or Relative Strength Index, is currently moving towards the neutral range and is getting closer to indicating that sellers are in control.

If the chart shows a barely noticeable rising wedge pattern, the price of Bitcoin could potentially fall closer to $60,000 before the upcoming halving event. But if the price manages to hold above the purple 200-day moving average, there’s a chance for a stronger rebound and a breakthrough above $70,000.

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2024-04-10 19:38