Core

Bitcoin

James

<p class="is-style-lead">U.S. macroeconomic uncertainty drove Bitcoin to a two-month low, but cooling inflation suggests that monetary policy may soon bolster the risk appetite.&nbsp;</p>
<p>Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) dip under $57,000 followed minutes from the U.S. Federal Reserve meeting, which confirmed a continuation of current interest rates till economic data justifies looser policies.</p>
<p>“The Fed’s decision to maintain a wait-and-see approach before committing to interest rate cuts signals a cautious optimism that inflation is on a downward trajectory but not sufficiently assured to justify immediate rate reductions,<em>“</em> Head of Derivatives at Bitfinex Jag Kooner said in a report.&nbsp;</p>
<p>The leading cryptocurrency displayed the macro correlation mentioned by Token Bay Capital founder Lucy Gazmararian last month, as BTC shed over 5% in 24 hours.&nbsp;Higher interest rates, like the levels maintained by the Fed, usually counteract demand for risk assets like cryptocurrencies, which likely catalyzed Thursday’s market activity.&nbsp;</p>
<p>With the central bank <a href="https://www.cnbc.com/2024/07/03/fed-minutes-fomc-not-ready-to-cut-rates-until-greater-confidence-inflation-is-moving-to-2percent-goal.html" target="_blank" rel="noopener noreferrer nofollow">fixed</a> on its 2% inflation target, BTC has traded between $56,800 and $70,000 after a blistering start to the year. Momentum from spot BTC ETF approval and pre-halving hype has cooled, but Kooner predicted that upcoming data may shape a clearer outlook for the coming months.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/why-bitcoin-could-stay-low-until-october-what-analysts-are-saying/" rel="noopener noreferrer nofollow"> Why Bitcoin could stay low until October: What analysts are saying </a></p>
<h2 class="wp-block-heading" id="how-tomorrow-s-nfp-report-could-impact-bitcoin-and-btc-etfs">How tomorrow’s NFP report could impact Bitcoin and BTC ETFs</h2>
<p>According to Kooner, the Non-Farm Payrolls (NFP) report expected on Friday could increase expectations for future rate cuts or spell further downward pressure for Bitcoin.&nbsp;</p>
<p>If market participants believe the ongoing economic uncertainty will eventually encourage <a href="https://crypto.news/?s=Federal+Reserve" target="_blank" rel="noopener noreferrer nofollow">the Fed</a> to cut rates, Kooner said Bitcoin’s appeal as an inflation hedge could rise again, directing capital into spot BTC ETFs.</p>
<p>However, “we’ve recently seen quite underwhelming flows and a lack of “dip-buying” since the Bitcoin halving, remarks from Kooner read. Bloomberg’s James Seyffart noted that U.S. spot BTC ETF activity has stalled, especially regarding trading volume.&nbsp;</p>
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   <p lang="en" dir="ltr">US <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> ETF flows have mostly stagnated. Not seeing tons of inflows, not seeing tons of outflows. Net inflows since launch sits at very healthy $14.7 billion<br><br>BUT the trading volume for the group is definitely on a downtrend. The group hasn't hit $3 billion since mid May <a href="https://t.co/SDkoE2Lqyf" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/SDkoE2Lqyf</a></p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1808203483977339234?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 2, 2024</a>
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<p>Read more: <a href="https://crypto.news/bitcoin-is-still-massively-undervalued-core-scientific-founder-says/" rel="noopener noreferrer nofollow"> Bitcoin is still massively undervalued, Core Scientific founder says </a></p>

Bitcoin rally hinges on rate cut, Bitfinex exec says

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