United

Jerome Powell

Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-plunges-below-60000-quickly" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Plunges Below $60,000 Quickly</a><br></p>
<p style="text-align: justify">In a dramatic turn of events, <a href="https://en.bitcoinhaber.net/bitcoin-surges-toward-45000-as-mining-companies-retain-holdings-and-big-investors-buy-in" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a>‘s value plummeted below $60,000 within a week, marking a steep decline from its recent peak of $70,000. The cryptocurrency market, known for its high volatility, faced a series of setbacks, largely attributed to developments in the United States. This article delves into the factors contributing to Bitcoin’s $10,000 drop from Monday through Sunday morning.</p>
<h2 id="what-triggered-the-initial-surge">What Triggered the Initial Surge?</h2>
<p style="text-align: justify">The week commenced on an optimistic note with Bitcoin’s price climbing by $3,000 on Monday, hitting $70,000 for the first time since early June. This surge was fueled by Donald Trump’s appearance at the 2024 Bitcoin conference in Nashville, where he made significant promises, including the removal of SEC Chairman Gary Gensler on his first day if elected.</p>
<p style="text-align: justify">Trump’s newfound pro-Bitcoin stance briefly buoyed the entire market. However, the enthusiasm was short-lived as Bitcoin’s value fell by $4,000 later on Monday and continued to decline throughout the week. By Friday evening, following the release of the U.S. July employment report, Bitcoin had dropped to $62,200.</p>
<h2 id="how-did-macroeconomic-factors-play-a-role">How Did Macroeconomic Factors Play a Role?</h2>
<p style="text-align: justify">The release of the U.S. employment report indicated an unemployment rate rise to 4.3%, the highest since October 2021. This revelation caused a ripple effect across markets, including Wall Street and the crypto sector, leading to sudden price drops. Concurrently, the Bank of England lowered <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">interest rates</a> by 0.25 basis points for the first time since the pandemic, aligning with similar actions from other central banks.</p>
<p style="text-align: justify">In contrast, the U.S. Federal Reserve has maintained high interest rates, causing uncertainty among investors. The high rates range of 5.25% to 5.50% has led to Democratic Senator Elizabeth Warren pressuring Fed Chairman Jerome Powell to lower rates sooner rather than later. This ambiguity around the Federal Reserve’s next move has made some investors wary, causing them to exit the crypto market temporarily.</p>
<h2 id="investor-exit-strategy-what-are-the-indicators">Investor Exit Strategy: What Are the Indicators?</h2>
<p style="text-align: justify">Reports of a declining U.S. economy and uncertainty surrounding the Federal Reserve’s decisions have led to significant withdrawals from cryptocurrency ETF funds. On Friday, exits from spot Bitcoin ETF funds surged to around $240 million, the highest in nearly three months, while Ethereum ETF funds also saw consecutive weeks of outflows. ETF funds’ movements have historically impacted Bitcoin’s price, making these exits a crucial factor in the cryptocurrency’s recent decline below $60,000.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Monitor macroeconomic indicators like employment rates and central bank policies.<br> – Pay attention to political developments influencing cryptocurrency regulations.<br> – Track ETF fund flows as they significantly impact market prices.<br> – Consider the short-term uncertainties in the crypto market when making investment decisions.</p>
<h2 id="conclusion">Conclusion</h2>
<p style="text-align: justify">Bitcoin’s fall below $60,000 highlights the cryptocurrency market’s inherent volatility and susceptibility to external factors. From political influences to macroeconomic <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a> and investor behavior, multiple elements have converged to precipitate this significant price drop. As the market navigates these challenges, investors are advised to stay informed and cautious.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-plunges-below-60000-quickly" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Plunges Below $60,000 Quickly</a></h5>

Bitcoin Plunges Below $60,000 Quickly

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