Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-faces-major-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Major Decline</a><br></p>
<p style="text-align: justify">On August 12, <a href="https://en.bitcoinhaber.net/anticipating-bitcoins-halving-event-strategic-insights-for-crypto-investors" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> experienced a steep drop to $57,653, marking a 2% decline within 24 hours as <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> prepared for a week filled with critical macroeconomic <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a> releases. This downturn follows Bitcoin’s surge past $60,000 at the end of last week, with market participants now questioning the sustainability of that momentum. Data from TradingView illustrated Bitcoin’s fall from a peak of $60,000 to a daily low of $55,681, translating to a 4% slide.</p>
<h2 id="critical-economic-data-ahead">Critical Economic Data Ahead</h2>
<p style="text-align: justify">The upcoming release of the US Consumer Price Index (CPI) and Producer Price Index (PPI) data is anticipated to influence the Federal Reserve’s decision on a potential rate cut in September. As CPI is expected to continue its downward trend, the Fed may be prompted to consider a significant rate reduction. Additionally, the UK will release its July CPI data on August 14, while Australia’s consumer confidence and Japan’s PPI figures are also set for release on August 13.</p>
<h2 id="factors-behind-bitcoin-dip">Factors Behind Bitcoin Dip</h2>
<p style="text-align: justify">According to the Kobeissi Letter team, a weakening labor market is a significant factor contributing to the recent Bitcoin selling pressure. In a post on X, the team highlighted a decline in consumer confidence index to 34.1 in July, the lowest since March 2021. They noted that Americans are increasingly pessimistic about job prospects, with the ratio of job openings to unemployed individuals dropping from 2.0 in 2022 to 1.2 in 2024.</p>
<p style="text-align: justify">Macro market events significantly impact crypto prices as they reflect broader economic conditions. The mixed economic signals have left investors uncertain, resulting in heightened volatility for Bitcoin, as observed on August 12. According to CME Group’s FedWatch Tool, as of August 12, the market is nearly evenly split on whether the Fed will opt for a 0.25% or 0.5% rate cut in September.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<ul>
 <li>Monitoring upcoming CPI and PPI data is crucial for anticipating potential Fed rate cuts.</li>
 <li>Understanding the labor market’s health can provide insights into consumer confidence and spending.</li>
 <li>Be prepared for volatility in Bitcoin prices due to mixed economic signals.</li>
 <li>Utilize tools like CME Group’s FedWatch Tool to gauge market sentiment on rate changes.</li>
</ul>
<p style="text-align: justify">In conclusion, Bitcoin’s recent decline highlights the cryptocurrency’s sensitivity to macroeconomic indicators and investor sentiment. As the market braces for key economic data releases, the interplay between these factors will likely dictate Bitcoin’s near-term price movements.</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-faces-major-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Major Decline</a></h5>

Bitcoin Faces Major Decline

Table of Contents

BH NEWS

Other articles published on Aug 12, 2024

Judge finds Ripple Labs liable for $125M penalty in SEC case: Law Decoded

Four Arrested in Kyiv for Alleged Kidnapping and Murder of Bitcoin Investor: Details

Weekly Article Recap: 8/05-8/09

Zcash Founder Pushes for Hybrid PoS with Shielded Labs

Kamala Harris Surges to 52% in Election Odds as Crypto Takes Center Stage

Binance Boosts Ripple and Shiba Inu Reserves: What This Means for $NOTI Investors

Join our free newsletter for daily crypto updates!