Bitcoin hit an all-time high of over $124,100 but subsequently dropped by 5%, settling below $118,000. Ethereum, while also close to its peak, was down 4% at around $4,500. The total cryptocurrency market capitalization decreased by nearly 4% to about $4.07 trillion. Optimism around potential U.S. interest rate cuts initially fueled Bitcoin’s rise, but a negative inflation report led to a market dip. Analysts suggest profit-taking and macroeconomic concerns contributed to the downturn.
The near certainty of U.S. interest rate cuts lifts risk appetite and pressures the dollar, according to Axel Rudolph, senior technical analyst at IG, a UK-based financial firm.
Bitcoin's pullback after hitting an all-time high looks like a classic bout of profit-taking, amplified by macro jitters, stated Thomas Perfumo, global economist for Kraken.
This spooks people, said Kyle Chasse, founder and chairman of the crypto venture firm MV Global, referring to the recent BLS report.
Collection
[
|
...
]