He The price of Bitcoin (BTC) recently lost momentum, falling below $36,000, as it charts a different path from the stock market that impressed investors amid lower-than-expected inflation numbers.
The poor performance in The price of bitcoin This is due to waning enthusiasm around the pursuit of BTC spot ETFs. With the narrow approval window for the newly identified Bitcoin spot ETF closing, it appears the US Securities and Exchange Commission (SEC) will extend the industry's wait time to make a decision.
Bitcoin (BTC) Falls Amid Positive Macroeconomic Trends
Bitcoin recorded one of its worst results of the month in the last 24 hours when its price fell by up to 3.7%. touching $35,300 at one point. Although Bitcoin price has found an anchor, its value remains suppressed, down 0.98% at press time to $36,131.97. However, the coin's trading volume increased by 26% to $24,678,584,741.
This knee-jerk reaction from Bitcoin bulls comes amid the revelation that US inflation has fallen to 3.2%, the lowest level recorded this year. With this impressive reading, Wall Street investors launched into intense stock buying, as a low inflation rate suggests that the Federal Reserve could stop further aggressive interest rate hikes.
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With this rise, the S&P 500, an index that tracks 500 of the largest US stocks, soared 1.8%, while the Nasdaq Composite posted a 2.3% increase. Complementing this rally, the 10-year Treasury yield fell 4.4% or 20 basis points.
With optimism on Wall Street, investors turned their attention away from Bitcoin and the cryptocurrency market in general, which explains the drop in prices.
The price won't stay low
According to experts' projections, the drop in the price of Bitcoin is a temporary event. Notably, Grayscale revealed in a recent report that low inflation and bond yields could be beneficial for the advancement of cryptocurrencies.
The thesis revolves around the possibility of interest rates peaking and conversations around Bitcoin spot ETF will improve. Bloomberg analysts have projected a 90% chance of approval by January 24 and the current consensus among market leaders is that when approval is granted, it can catalyze the price of BTC and possibly spark the next bull market. .
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