Bitcoin spent a difficult week, sitting around $ 112,600 After losing almost 3% since Monday. The entire cryptography market seems fairly fragile at the moment, and there are some major reasons why traders become nervous.
Nourished Chair Jerome Powell fundamentally thrown cold water On the feast of the decline of everyone on Tuesday. He clearly indicated that the central bank would not go crazy with reduction rates, saying that they should balance inflation problems with the low labor market. This is not what cryptographic investors wanted to hear, because the lower prices generally help Bitcoin and other risk assets.
Powell’s comments have helped stimulate the dollar, which is bad news for Bitcoin, because the two generally move in opposite directions. When the dollar is strengthening, people tend to withdraw money from crypto and traditional assets. The market is now waiting for more economic data this week, including GDP figures and inflation figures that could still make things happen.
But it is not only the Fed that has frightened people. Geopolitical tensions accelerate again with NATO warning Russia of military responses and in progress in the Middle East. When the world becomes disorderly, investors generally run safe assets, and Bitcoin certainly does not qualify as sure in the minds of most people.
The institutional money flowing in the Bitcoin ETF also started to go to outings. Tuesday scored the second consecutive day of outings, with more than $ 100 million leaving Bitcoin Spot ETF.
Conclusion
The Bitcoin slide reflects a storm of signals from the Fed Hawkish, a stronger dollar, geopolitical thrusts and FNB outputs, leaving traders who are preparing for more volatility, because the economic data to come could root the market.
Read also: Bitcoin Price at Pivot Point
