Bitcoin rebounds to US$67,000: the two news that the market follows closely

The cryptocurrencies rebound slightly. He bitcoin (BTC) It rises more than 2% and exceeds US$67,000. For its part, Ethereum is trying to catch up but is still below $3,300.

After a couple of weeks of great volatility, the bitcoin He opted for red at the beginning of the week. And it is that the leading cryptocurrency It fell around 10% from the historical maximum reached on March 12, when it reached US$73,500.

Cryptocurrencies: the two data that the market follows

First of all, a less momentum from exchange-traded funds (ETF) cash. These investment products have undoubtedly beenthe great protagonists of the cryptocurrency market in 2024 and are the big reason why bitcoin rose without brakes shortly after its approval. Thanks to them, the Institutional interest in BTC soared and, with it, the prices of a cryptocurrency that seemed like it would reach 6 figures sooner than the vast majority of analysts anticipated.

Nevertheless, CoinShares data They are clear about this: the daily flows of entries and exits are at a standstill. In the last week, bitcoin funds recorded net inflows worth $865 million, although the previous They lost 904 million. Not only that, but the analytics firm highlights that activity has slowed, with daily trading volume down 36% from the peak reached 3 weeks ago.

Ángel Luis Quesada, CEO and co-founder of Onyze, points out that the “main factor” that can cause a trend change in the price of bitcoin are the US BTC spot ETFs. “Specifically, when the volume of daily income they receive begins to decrease,” he points out.

This expert also points out that the ‘halving’ or halving the rewards of the Bitcoin blockchain Nor will it be as positive as the market predicts, a thesis repeated by many analysts in recent weeks. “On the other hand, in the medium term, we also foresee that there may be a correction in the coming months, As is usually the case in all markets when investors give way to liquidate their profits; thus reducing demand levels and increasing the volume of supply of these assets in the market,” highlights Quesada.

How the Fed’s expectation impacts Bitcoin

Secondly, the perspective of a Federal Reserve (Fed) tougher than expected is not helping bitcoin either. The latest macroeconomic data, such as the manufacturing and services PMIs for the last month, have reinforced the belief that the Fed could fail to comply with the roadmap announced in March and implement fewer interest rate cuts than expected.

This position has been reinforced by a US 10-year Treasury bond yields climb to annual highs and the dollar, with the ‘greenback’ reaching its highs in November of last year. Traditionally, rallies in these values ​​usually cause a reduction in investment in risk assets such as cryptocurrencies.

If that were not enough, the Fed has not done much to allay these fears. In fact, the president of the US central bank, Jerome Powell, stated this Wednesday that the Fed has “time” to decide when and how to execute the expected pivot in monetary policy. “We do not expect it to be appropriate to reduce our policy rate until we have greater confidence that Inflation is falling sustainably towards 2%. Given the strength of the economy and the progress on inflation so far, we have time to let incoming data guide our policy decisions,” Powell said.

The March employment report, due this Friday, will give more clues about what will be the next move of the Fed. Yesterday, the monthly report of the private consulting firm ADP estimated that the US created 184,000 jobs in the third month of the year, almost 100,000 less than the official figure for February. It should be noted that some analysts have been very critical of this indicator due to the poor precision it has shown in recent times.