Bitcoin drops to 65,000 USD, expert explains the reason for the red fire in the market
The cryptocurrency market has experienced a significant downturn, with Bitcoin leading the way as it retreated to the $65,000 mark after failing to retest its all-time high of $73,700 reached in March.
Market expert Michael van de Poppe sheds light on the reasons behind this ongoing bloodbath, highlighting some of the key factors contributing to the current state of the market.
Cryptocurrency markets battle with uncertainty
An important event van de Poppe highlighted was the Consumer Price Index (CPI) data released last Wednesday, which had a major impact on the Federal Reserve's decision on interest rates.
The data came in lower than expected in favor of risk assets. Lower-than-expected headline CPI of 3.3% (3.4% expected) and core CPI of 3.4% (3.5% expected) point to the possibility of interest rate cuts or implementation Positive outlook on interest rate cuts in the future, creating favorable conditions for the market.
An important event was the release of Producer Price Index (PPI) data, which provides inflation data from the producer's perspective. Data shows a lower-than-expected core PPI score of 2.2% (2.5% expected) and a core Y/Y PPI score of 2.3% (vs. 2.0% expected). 4%).
Additionally, data showed negative numbers, creating favorable conditions for risky assets. However, van de Poppe believes that despite these positive indicators, the cryptocurrency market continues its downward trend.
