Plunge

United

Bitcoin

BlackRock

The volatility in the market today caused a lot of panic as investors rushed to sell Bitcoin aiming to buy again at lower price levels. Behind the correction in Bitcoin price to $67500 was majorly the hotter than anticipated inflation in the US. According to the CPI report, the country has a long way to go before starting rate cuts and an even longer time to achieve the set 2% inflation goal. 
Top altcoins posted larger dips led by Solana’s 6% to $165, Ethereum’s 5.5% to $3,440 and XRP’s 4.7% to $0.6 mirroring the pullback in BTC price. 
This analysis aims to delve into key factors that may trigger a larger sell-off in BTC price over the next couple of weeks. 
<h2 class="p1" id="1-hotter-than-expected-inflation-leaves-bitcoin-price-vulnerable-to-volatility">1. Hotter Than Expected Inflation Leaves Bitcoin Price Vulnerable To Volatility</h2> 
If the reaction to the rising inflation in the US, which topped 3.5% annually based on the Consumer Price Index (CPI) report weakens the general investor outlook, <a href="https://coingape.com/price-predictions/bitcoin-btc-price-prediction/">BTC price</a> might sweep fresh liquidity towards $60,000 before halving occurs around April 17. 
The inflation sprint beat market expectations of 3.4%, further dwarfing the previous month’s figure of 3.2%. Market watchers relied heavily on the inflation numbers in March to foresee the Federal Reserve’s projection of interest rate cuts in the year. 
Due to the unceasing inflation rise, economists have been forced to look as far as June to September for the initial rate cut. According to a report on the <a href="https://coingape.com/breaking-bitcoin-breaks-key-support-as-us-cpi-comes-in-hot-at-3-5/">US CPI</a> by CoinGape, the Fed’s goal of achieving an inflation rate of 2% seems a distant dream. 
Moreover, interest rates will likely remain elevated over the coming months, increasing the cost of borrowing money for businesses and individuals while generally shrinking spendable incomes and investments in risk assets like Bitcoin, crypto, and stocks. 
In March alone, inflation rose by 0.4% on a seasonally adjusted basis. Note that the CPI increased by 3.5% over 12 months prior to the seasonality adjustment. 
<h2 class="p1" id="2-bitcoin-etf-uptake-slows-as-net-outflows-soar">2. Bitcoin ETF Uptake Slows As Net Outflows Soar</h2> 
After a magnificent start, <a href="https://coingape.com/gbtc-bitcoin-etf-outflows-reaching-equilibrium-grayscale-ceo/">Bitcoin ETFs</a> have recently struggled to sustain a positive outlook. As reported in the Bitcoin price forecast on Tuesday, net outflows continue to characterize the sector. According to <a rel="nofollow" href="https://sosovalue.xyz/assets/etf">SoSoValue</a>, the daily total net outflow volume was $19.48 million as of April 9. 
<figure id="attachment_190847" aria-describedby="caption-attachment-190847" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-190847" src="https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59.png" alt="Bitcoin ETFs data | SoSoValue" width="2412" height="1010" srcset="https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59.png 2412w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-300x126.png 300w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-1224x513.png 1224w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-768x322.png 768w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-1536x643.png 1536w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-2048x858.png 2048w, https://coingape.com/wp-content/uploads/2024/04/Screenshot-2024-04-10-at-16.29.59-150x63.png 150w" sizes="(max-width: 2412px) 100vw, 2412px">
 <figcaption id="caption-attachment-190847" class="wp-caption-text">
 Bitcoin ETFs data | SoSoValue
 </figcaption>
</figure> 
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. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 On April 9, the total net outflow of Bitcoin spot ETFs was $19.48 million. Grayscale ETF GBTC had a net outflow of $154 million on a single day, and BlackRock ETF IBIT had a net inflow of $128 million on a single day.<a href="https://t.co/npjWVH3bMi">https://t.co/npjWVH3bMi</a> 
 — Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1777915474837397921?ref_src=twsrc%5Etfw">April 10, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Increasing ETF inflows in February and March significantly triggered a spike in the demand for Bitcoin. This coupled with the positive market sentiment ensured that crypto prices remained elevated fuelled by BTC price surge to a new all-time high of $73,803, data by <a rel="nofollow" href="https://www.coingecko.com/en/coins/bitcoin">CoinGecko</a> shows. 
<h2 class="p1" id="3-weakening-technical-structure">3. Weakening Technical Structure</h2> 
Bitcoin price is seeking support at $67,500 after CPI data caused a volatility surge in the market. The coin also holds below two key moving averages, including the 50-day EMA and the 20-day EMA (red and blue lines on the chart) implying that further losses are highly likely this week. 
<figure id="attachment_190846" aria-describedby="caption-attachment-190846" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-190846" src="https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20.png" alt="Bitcoin price chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20.png 2694w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/04/BTCUSD_2024-04-10_16-54-20-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-190846" class="wp-caption-text">
 Bitcoin price chart | Tradingview
 </figcaption>
</figure> 
With the Relative Strength Index (RSI) dropping into the neutral zone and closing in on the oversold region, it is apparent that the sellers have the upper hand. 
A subtle rising wedge pattern on the chart could further drive prices lower toward $60,000 ahead of validated ahead of the halving next week. However, recovery may gain momentum if Bitcoin price respects the 200-day EMA (line in purple) to pave the way for a larger breakout above $70,000. 
The post <a href="https://coingape.com/markets/3-reasons-likely-to-trigger-bitcoin-price-pre-halving-plunge-to-60000/">3 Reasons Likely To Drive Bitcoin Price $60,000 In April</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

3 Reasons Likely To Drive Bitcoin Price $60,000 In April

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