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Bitcoin breaks below $58,000/BTC. Photo: Vecteezy . |
Bitcoin prices have fallen to their lowest level in 21 months as the prospect of higher interest rates and concerns that the world's largest Bitcoin holder may continue to sell off have weakened investor sentiment.
During trading on July 1st, the price of Bitcoin briefly fell 1.5% to $57,742 , its lowest level since September 17th, 2024.
According to Bloomberg, hawkish statements from Federal Reserve officials are reinforcing expectations that interest rates will remain higher for an extended period. This is causing capital to continue flowing out of non-yielding assets such as cryptocurrencies. In June alone, US -listed Bitcoin ETFs recorded net outflows exceeding $4 billion , the largest since their launch two years ago.
Tony Sycamore, an analyst at IG Australia, noted that Bitcoin is facing increasing pressure from changing expectations regarding the Fed's interest rate policy as well as the strengthening US dollar.
According to this expert, the US non -farm payrolls report, to be released later this week, could continue to put pressure on Bitcoin if the data reinforces the view that the Fed will maintain a hawkish stance on inflation.
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Bitcoin continues its downward trend amid a lack of positive news to support it. Photo: CoinMarketCap. |
In addition, investors have reversed their initial optimism regarding Strategy's financial restructuring plan, led by Michael Saylor, raising new concerns that one of the world's largest Bitcoin buyers may no longer be a stable source of demand in the market.
Initially, the market welcomed Strategy's plan to buy back shares and increase its cash reserves. However, the focus quickly shifted to the company gaining more flexibility in selling Bitcoin and prioritizing balance sheet management over aggressively accumulating Bitcoin as before.
To date, Bitcoin has fallen more than 50% from its all-time high of over $126,000 set last October, and has also dropped below its 200-week moving average – a technical threshold often seen as a signal that the market may be entering a prolonged bear market.
In his first press conference as Fed Chairman last month, Kevin Warsh affirmed that the central bank would not tolerate high inflation. This statement increased expectations that the Fed would continue to raise interest rates, thereby supporting the appreciation of the US dollar.
Not only Warsh, but many other Fed officials have recently signaled the possibility of further tightening of monetary policy. Cleveland Fed President Beth Hammack told CNBC on June 30 that the Fed may have to raise interest rates further to bring inflation back to its 2% target.
Source: https://znews.vn/gia-bitcoin-cham-day-gan-2-nam-post1665013.html
