Why bitcoin is falling again towards $60,000

Why bitcoin is falling again towards $60,000
Why bitcoin is falling again towards $60,000

The queen of cryptocurrencies, which crossed $65,000 at the start of last week, is once again weakened.

Bitcoin’s rebound will only last a short time. Since this Friday, we have seen a clear break in bitcoin, which was trading around $63,000 last week. This Monday, the queen of cryptocurrencies fell again towards $60,000, losing more than 3% over a week. In its fall, bitcoin led other cryptocurrencies, including ether which lost 6% over a week, but also XRP and dogecoin which fell respectively 6% and 12% over the same period.

Although bitcoin has been on the rise again since 6 a.m. this Monday, the queen of cryptocurrencies is now far from the $65,000 reached at the start of last week. The fall of bitcoin is explained by disappointing American economic data, including an expectation of inflation in the United States over one year at 3.5% against forecasts of 3.2%. Similarly, Dallas Federal Reserve President Lori Logan expressed “uncertainty” about whether the Fed’s current policy was restrictive enough and pointed to “significant upside risks” to the inflation, specifies Coindesk.

These announcements caused the dollar to rise slightly and, by correlation, risky assets, including bitcoin, to fall. Despite this phase of turbulence, the queen of cryptocurrencies has gained 50% since the start of the year, driven by investors’ optimism regarding new financial investments, spot bitcoin ETFs in the United States. Since April 30, Hong Kong also offers this type of financial product, which could also contribute to an increase in assets. However, bitcoin remains 15.5% lower than its absolute record reached on March 14, at $73,750.

Antoine Larigaudrie with Pauline Armandet

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