In the past day, the wider cryptocurrency market has experienced a wave of selling, causing Bitcoin to drop by almost 4% and top ten altcoins to decline anywhere from 4-10%. At this moment, Bitcoin’s price is decreasing by 3.67%, bringing it below $64,500 as economic indicators suggest a lackluster demand in the US economy.
US Business Activity Cools Down
On Tuesdays announcement, S&P Global revealed that their U.S. Composite PMI Index, which assesses both manufacturing and service industries, dropped to 50.9 for this month from a previous 52.1 in March. A value greater than 50 indicates growth within the private sector.
In April, the business sector in the US experienced a four-month low in activity due to reduced demand. At the same time, inflation rates showed a slight decrease despite increased costs for businesses. These signs suggest that relief may be on the way, aligning with the Federal Reserve’s efforts to identify indicators that economic activity is slowing down enough to ease inflationary pressures.
Although the Federal Reserve raised interest rates by a total of 525 basis points between March 2022 and the present, the US economy still outpaces its international peers. Nevertheless, the Fed has voiced worries over unyielding inflation and strong labor market data, suggesting that their attempts to lower inflation to the desired 2% have faced challenges or even reversals.
The Federal Reserve is expected to keep its benchmark interest rate between 5.25% and 5.50% at their upcoming meeting. Last week, various Fed officials voiced opposition to any rate reductions for the remainder of the year, underscoring the importance of maintaining a tight monetary policy based on recent economic indicators.
Bitcoin Sub $60,000 Levels Possible
Peter Schiff, a well-known Bitcoin critic, voiced his concerns and urged caution to investors. He underscored the significance of Bitcoin staying above $60,000, explaining that a dip below this mark could result in a steep price decrease. Schiff reminded experienced Bitcoin supporters that market volatility is common, but for first-time investors who have purchased ETFs, an unexpected drop in value might be a shock.
For Bitcoin holders, the situation isn’t promising. You need to fervently hope that Bitcoin can sustain its price above $60K to prevent a significant drop. Experienced Bitcoin enthusiasts may be accustomed to market volatility and steep declines. However, novice investors in Bitcoin ETFs might face unexpected challenges.
— Peter Schiff (@PeterSchiff) April 24, 2024
A critic of Bitcoin began his analysis by stating that the drop in gold’s value might have bottomed out, viewing the current price around $2,300 as similar to gold’s new baseline of $2,000. He predicted a resistance level for gold at $2,400, believing it to be temporary. However, he expressed a different perspective for Bitcoin, distinguishing its potential from that of gold.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- MNT PREDICTION. MNT cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- OP PREDICTION. OP cryptocurrency
- ARKM PREDICTION. ARKM cryptocurrency
- EUR KRW PREDICTION
- VIC PREDICTION. VIC cryptocurrency
- NLS PREDICTION. NLS cryptocurrency
- Call of Duty: MW3 and Warzone Season 5 Reloaded Update Patch Notes Revealed
2024-04-25 08:15