📰 Table Of Contents
Bitcoin Price Tumbles Below $60,000
The Bitcoin (BTC) price has tumbled more than 5% on Tuesday to below $60,000 following a disappointing first day of spot Bitcoin ETF trade in Hong Kong, and following fresh US economic data that points to sticky inflation and strengthens the argument that the Fed should wait before cutting interest rates.
Technical Analysis and Market Trends
- Bitcoin was last changing hands in the $59,900s, down from nearly $65,000 in early Asia trade.
- Since mid-April, the Bitcoin price has consistently found resistance at its 21 and 50DMAs, suggesting bearish control.
- Bitcoin has formed a descending triangle in the last few weeks, indicating a potential bearish breakout.
Hong Kong Spot Bitcoin/Ether ETF Launch
The launch of spot Bitcoin and Ether ETFs in Hong Kong fell flat, with total trading volumes below expectations.
Macro Headwinds and Market Sentiment
- Data shows concerns about inflation in the US remaining above the Fed’s target.
- Market-implied probabilities suggest a shift in Fed rate cut expectations.
- The US Dollar Index and US government bond yields are trading close to recent highs.
Bitcoin Bull Market Outlook
Weakness in ETF inflows and bearish technicals could lead Bitcoin to the $50,000s, but the long-term bull market outlook remains positive.
Factors Influencing Bitcoin’s Future
- Interest rates in the US may have peaked, potentially leading to future rate cuts.
- ETF and safe-haven demand could boost Bitcoin in the coming years.
- The narrative of Bitcoin as “digital gold” is gaining momentum.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
