Furthermore, the actions of institutional investors also play an important role, as these organizations now manage their cryptocurrency holdings differently.
He Bitcoin registered two falls this Thursday, but remains above US$67,000 amid signs of cooling of inflation in the US and after the announcement by the Federal Reserve (Fed), which only foresees an interest rate cut in 2024, instead of the three cuts previously expected.
The United States Consumer Price Index (CPI) showed falls greater than expected, with the general index standing at 3.3% year-on-year and the underlying index reducing to 3.4%. This initial news boosted bitcoin slightly, but it subsequently lost ground following comments from Fed Chairman Jerome Powell.
The prospect of keeping interest rates high for longer in the US has also impacted the broader cryptocurrency market. Ethereum has fallen 1.7%, Shiba Inu 1.6% and Solana 1.4%. However, some cryptocurrencies have shown resistance: XRP has advanced 0.4% and Dogecoin 2.4%.
Bitcoin: what the market analyzes
Despite the bearish outlook and recent correction, retail traders remain confident of a bitcoin price rebound. According to XS.com, most of these traders see the recent correction as an opportunity to buy at a lower price.
From his perspective, “large withdrawals are considered a bullish signal, as they indicate that investors prefer to keep their funds in personal wallets rather than on exchanges for quick trading. This usually reduces the amount of bitcoin available on exchanges, which which could lead to a price increase due to increased shortages.
The macroeconomic conditions influencing the cryptocurrency market have generated a sentiment of caution, which could explain the current sideways movement. Furthermore, the actions of institutional investors also play an important role, as these organizations now manage their cryptocurrency holdings differently.
Source: Ambito
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