Key Reason Why Bitcoin (BTC) Fell to One-Week Low: Details

Bitcoin sank to a one-week low of $61,928 in early trading on Monday before recovering slightly to trade down about 2% at $62,387 at press time.

The demand for approximately a dozen U.S. spot Bitcoin ETFs remains moderate. Bitcoin's 2024 gain has slowed to over 47% from more than 70% in mid-March, when the cryptocurrency reached a record high of nearly $74,000.

The Federal Reserve will release an interest rate decision on May 1 this week, with a 95.6% probability of keeping interest rates unchanged. In addition, the United States will also announce the April unemployment rate on May 3. Expectations for a U.S. interest rate cut this year…

— Wu Blockchain (@WuBlockchain) April 29, 2024

Speculation ahead of the Federal Reserve meeting has fueled debate among market participants about the potential trajectory of interest rates and its implications for digital assets. Higher interest rates are being perceived as a headwind on risk assets such as Bitcoin.

As the Federal Reserve prepares to convene and provide insights into its outlook on interest rates and monetary policy, market participants will closely monitor developments and parse statements for clues about the central bank's intentions. Any signals pointing to a more hawkish stance on interest rates could further unsettle digital asset markets, while a dovish tone may offer respite to investors seeking stability.

Expectations remain on BTC price post-halving

A total of 19.68 million BTC have been mined and issued, representing 93.75% of the total supply of 21 million BTC. Thus, approximately 1.312 million BTC will be issued over the next 126 years. A total of 50% of the remaining supply of 1.312 million BTC will be mined between the fourth and fifth halvings.