Bitcoin’s Price Fall: What You Need to Know
If you’re a crypto enthusiast, you would have noticed the sudden downturn the crypto market experienced on April 12, affecting not just Bitcoin but also other major assets. This decline saw Bitcoin’s price drop below $67,000 for the first time in over a week.
Reason Behind BTC Price Drop
The decline in Bitcoin’s price, by about 5% in a day, took it from above $70,000 to below $67,000 in just five hours. This drop marked the first time the leading cryptocurrency fell below the $67,000 mark since April 4, according to Santiment.
Ether’s Value
Ether, the second-largest cryptocurrency by market capitalization, also saw a significant decline, dropping by almost 8% within 24 hours. This drop reflected the general state of the crypto market at the time.
Market Correction
Interestingly, the crypto market’s recent downturn wasn’t an isolated event. Traditional assets like the S&P 500 index and gold prices also experienced notable corrections, falling by 1.5% and 3.4%, respectively.
Impact of Inflation Concerns
Both the crypto market and other traditional assets witnessed price declines due to concerns about Consumer Price Index (CPI) and inflation. The high inflation rates led to doubts about the Federal Reserve’s decision to maintain higher interest rates in 2024.
Hedge Against Inflation
Assets like Bitcoin and gold are often seen as hedges against inflation and economic instability. However, the prospect of raised interest rates tends to drive investors away from high-risk assets like cryptocurrencies, causing a drop in their prices.
Bitcoin’s Current Price
As of now, Bitcoin is valued at around $66,826, representing a significant 5% decline in just 24 hours.
Hot Take: Navigating the Crypto Market Downturn
Given the recent market downturn driven by inflation concerns and interest rate uncertainties, it’s essential for crypto investors to stay informed and vigilant. Understanding the impact of economic indicators on the crypto market can help you make informed decisions during volatile times like these.
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