Bitcoin Declines Below $80,000 Amid Macroeconomic Concerns
Bitcoin fell below $80,000 on Monday due to ongoing selling pressure in the equities market. The cryptocurrency dropped 3% to $80,185.27, hitting a low of $79,162.46. Related companies also experienced declines, and Bitcoin ETFs recorded significant outflows. Macro uncertainty remains a key concern for investors, despite a positive long-term outlook driven by regulatory developments.
On Monday, Bitcoin experienced a brief dip below the $80,000 threshold, influenced by ongoing selling activity in the equities market. The leading cryptocurrency registered a decline of 3%, settling at $80,185.27, with the day’s low reaching $79,162.46 according to Coin Metrics.
Moreover, shares of related companies faced declines, with Coinbase falling by approximately 9%, Robinhood by 13%, and Strategy (formerly MicroStrategy) by 11%. Bitcoin ETFs also faced challenges, witnessing a fourth consecutive week of outflows totaling $867 million last week, amounting to $4.75 billion over the full four-week period per CoinShares.
The bearish sentiment was exacerbated over the weekend, with Bitcoin plummeting to the $80,000 range for the first time since February 28. This trend coincided with President Donald Trump signing an executive order to initiate a U.S. bitcoin reserve and digital asset stockpile, which some investors viewed as disappointing. Macro uncertainty remained a prevailing factor in the market, particularly after Trump indicated the potential for a U.S. recession.
Without distinct catalysts specific to cryptocurrency, macroeconomic concerns are expected to limit price increases in the near future. Investors are keeping a close eye on significant economic metrics to be released this week, including the Job Openings and Labor Turnover Survey on Tuesday, the consumer price index on Wednesday, and the producer price index scheduled for Thursday.
Despite expectations of potential further price drops before a new record is established, investors maintain a cautiously optimistic perspective for the year, driven by favorable regulatory developments.
In summary, Bitcoin’s recent decline below $80,000 underscores the adverse impacts of macroeconomic factors on cryptocurrency values. The selling pressure, coupled with outflows from Bitcoin ETFs and disappointing news regarding government initiatives, has raised investor concerns. As economic indicators are closely monitored, the outlook remains cautiously optimistic for the crypto sector due to anticipated regulatory support despite current challenges.
Original Source: www.cnbc.com
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