Bitcoin price falls on weak demand and Fed policy shift

Bitcoin prices fell due to declining demand for dedicated US exchange-traded funds and falling expectations on weaker Federal Reserve monetary policy.

Bitcoin dropped by 5.3%, following which there was a kind of recovery, with the price standing at $66,735. Tokens that were popular within the meme community, such as Pepe and dogwifhat, also experienced a decrease.

The year 2024 is witnessing a drop because of continuing US price situations, paving the way for investors to reduce wagering related to federal interest rate reductions. This brings about increased Treasury yields as well as the dollar. 

According to Stefan von Haenisch, Head of Trading at OSL SG Pte, this new perspective on the Fed appears to be having an impact on the cryptocurrency industry. In actuality, every market is being affected, especially when it comes to the situation where memes have seen prices surpassing that of Bitcoin six months ago.

Bitcoin has dropped by roughly 10%, following a jump to $73,798. The surge of day-to-day inflows within spot Bitcoin ETFs has started lessening. This is impacting the biggest digital asset.  

In the view of the Co-Founder of DACM, Richard Galvin, for the past day, the crypto arena has lost some of its robustness owing to the latest economic data. 

The figures spoke of the US manufacturing industry increasing its foothold, a first since September 2022, with input costs rising. After the report was made public, the level of Fed easing priced in favor of swap contracts fell by 65 points.

There is speculation that the supply of fresh Bitcoin tokens will be halved during the month. This is a four-year occurrence that a few traders consider a prop regarding the cryptocurrency space. Some others do not expect the token to climb significantly anytime soon.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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