Bitcoin was last seen dipping to a new weekly low. Initial reports showed a figure of $68,500. However, when writing this article, BTC has plummeted to a lower value of $67,216.81. That comes to a 3.07% dip in the last 24 hours and a drop 2.30$ in the last 7 days. Bitcoin enthusiasts are not precisely hampered by this trend, for they are bullish about the future. The decision to cut the rate by the Federal Reserve is awaited. By the looks of it, crypto enthusiasts are not expecting it to happen any time soon.
A higher rate will continue to exert pressure on BTC because investors lack the appetite to take risks. In other words, they would not invest in risky assets, which would, hence, affect the inflow into the market. It was previously speculated that the Federal Reserve would cut the rate at least once in the first six months of 2024. That is a far-fetched dream now, as the first-ever cut could come later in the second half of the year.
Advertisement
Also, the inflation data is about to surface. The Biden Administration brought inflation under 4% in 2024, with the last report showcasing an inflation rate of 3.4%. The figure for May 2024 will be published in the next couple of days. Attempts are being made to curtail it by as much margin as possible—potentially bringing it down to 2% by the end of the year.
Ongoing trends are playing with Spot Bitcoin ETF. Spot Ether ETF, if and when approved, will join the list no matter how optimistic the crypto market is about Ether ETF.
Another factor that has emerged as a reason for the dip, or constant consolidation phase, is miner capitulation. It entails the exit of weak Bitcoin miners from the process and selling their holdings to cover operational expenses. It ideally happens around Bitcoin Halving. Since the process has happened this year, it is only natural for the market to see weak miners taking an obvious course of action.
That said, another incident has shaken up the Bitcoin sphere. The ETF offering saw the end of a 19-day inflow streak. It ended on June 10, 2024 (Monday), with a net outflow of $64.9318 million. Almost every fund manager reported net outflow except BITB and IBIT, each reporting an inflow of $7.5910 million and $6.3433 million, respectively. The largest contributor to net outflow was GBTC by Grayscale. Its figure came to around $39.5366 million.
Advertisement
As for Bitcoin (BTC), near-term predictions are bullish. It could surpass $77,000 in the next 5 days and $87,000 in the next 30 days. The monthly growth is expected to be $87,952 for a surge of 29.35% from the current value.
