Taking a Dip
The markets are taking a dip.
Bitcoin took a hit today, falling to as low as $67,444, 8.3% below its fresh ATH of $73,580 at time of writing.
Bitcoin has been on a roll thanks to the massive success of new US spot bitcoin ETFs, however the latest data dropped from the Labor Department's Bureau of Labor Statistics showed that the producer price index jumped by 0.6% last month.
This indicated that prices were higher than expected in February, which traders interpreted as a signal that the Federal Reserve might not cut interest rates in May, leading to a sell-off of digital assets and stocks.
Another possible factor was attributed to the $400 million worth of bitcoin that was shifted by Grayscale to Coinbase, based on Arkham Intelligence data.
Editor's Take:
Ultimately, we can attribute the dip to all sorts of reasons and narratives, but the fact is that prices can't keep going up, and up only - even if it may feel that way in bullish market conditions. As it stands, BTC has already posted 6 consecutive months in green, and its price would have to close below ~$61k levels to paint a red candle this month. It's also worth noting that while traders may be looking forward to rate cuts as a bullish signal, historical precedence shows that markets can instead take a short-medium term downturn when rates start cutting, as this indicates that the economy is in a weaker state. Regardless, there's no saying how far this current bullish momentum will carry us, and it's likely a futile game to try to call a top (or bottom).
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