Bitcoin started the week with a drop and continues
2 min readBitcoin, the main cryptocurrency on the market, started the week in decline. This Monday BTC was traded below $61,000 and todaz reached a value of $60,866. Other cryptocurrencies also saw declines, such as Ethereum, which fell almost 4%, and altcoins such as Solana, which saw a 5% reduction.
According to The Block, spot Bitcoin exchange-traded funds (ETFs) in the United States have seen significant outflows of $544.1 million in the past week, totaling more than $1.1 billion in outflows in the past fifteen days.
Economic uncertainty in the US may be affecting Bitcoin
Factors such as growing economic uncertainty in the United States (US) and regulatory concerns over major cryptocurrencies are contributing to a negative market environment.
This week, the personal consumption expenditures (PCE) price index will be released, considered by the Federal Reserve (Fed) as one of the main indicators of inflation in the United States.
The core PCE, which strips out volatile items such as food and energy, is expected to show a 0.1% increase on a monthly basis. That would indicate a slowdown from previous releases.
In addition, the revised US Gross Domestic Product (GDP) for the first quarter is expected to be released this week. With this data, the leaders of the US Central Bank will be able to better assess the timing for possible cuts in the country’s interest rates.
SEC Decides to End Investigation into Ethereum
According to the CME FedWatch Tool, the market views the September meeting as the likely date for rate cuts, with 65.9% of participants believing such cuts will occur then.
However, faced with a scenario of economic uncertainty, investors may be reluctant to invest in more volatile assets, such as Bitcoin and other cryptocurrencies.
On the other hand, the decision by the US Securities and Exchange Commission (SEC) to close its investigation into Ethereum and the Markets in Crypto Assets (MiCA) regulations in the European Union have also contributed to uncertainty about the future of cryptocurrencies.
