Bitcoin Dropping Below 50,000? Weak Data This Week Rekindles Fears

Institutional Crypto Research Written by Experts

Author

Markus Thielen
August 02, 2024

👇1-14) The week started positively, with three US pension funds expressing interest in acquiring Bitcoin through ETFs. Even though Mt. Gox distributed billions of dollars worth of Bitcoins to creditors, and 40% of these were sent to exchanges, Bitcoin prices continued to rise. The trend line near 70,000 was tested for the sixth time. However, the situation soon took a turn.

👇2-14) In the past 48 hours, it has become apparent that the US economy is weaker than the Federal Reserve initially believed. This week's FOMC statement was moderately hawkish, suggesting various possible scenarios. However, during the Q&A session, Fed Chair Powell delivered a dovish message, indicating that a rate cut in September is likely if inflation decreases as anticipated.

👇3-14) This dovish tone triggered rallies in stocks and Bitcoin. However, less than a day later, the landscape shifted dramatically when a weak ISM index sent shockwaves through risk assets.

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