Bitcoin has been weak again in recent days, once down to $59,000 and then back in the vicinity of $60,000. According to external sources, this wave decline was not driven by a single factor, but by simultaneous pressure on macro-data, stock-market reversals and geo-situations. According to CoinGecko, the BTC has accumulated a decline of over 20 per cent over the past month.
According to the article, the re-emergence of a buyout in the vicinity of US$ 5.9 million suggests that this position is still seen by the market as short-line support. Bitcoin also fell by $60,000 on June 6, and the current price has repeatedly tested low, indicating that the market is still looking for a new equilibrium.
Inflation and expected pressure on interest rates
The media linked the earlier round of the month to the increase in inflation to 4.2 per cent in the United States in May. At the same time, the Fed has chosen to maintain interest rates to meet the pressure of the CPI to continue up. Markets are also concerned about further tightening during the year.
Against the backdrop of high interest rates and possibly even upwards, the allocation of funds to highly volatile assets is usually reduced. According to this article, the recent pressure on bitcoin is related to the overall risk preference for cooling, and not just to the internal factors of the encrypted market.
The Science and Technology Unit resonates with the situation in the Middle East
The article also mentioned the recent fall of the United States Science and Technology Unit and the apparent outflow of funds from some large technology companies. When the stock market weakens, the risk-averse sentiment is transmitted to the encrypted market, synchronizing bitcoin.
At the same time, doubts surrounding the peace agreement between the United States and the Islamic Republic of Iran have rekindled. The report mentions that Iran views the Israeli attack on Lebanon as one of the important factors influencing the negotiations. If agreements are delayed, crude oil prices may continue to rise and further increase market concerns about inflation and economic pressures.
$59,000 for short-term focus
In response to the follow-up, the article cites Anthony Scaramucci ' s view that bitcoin may be in the low range of the current cycle. He believed that, if the four-year cycle continued logically, the BTC had the opportunity to re-up to $70,000 in July this year.
However, this judgement is based on the premise that market sentiment is improving. The article mentions that if the situation in the United States of America is eased and the peace agreement progresses, the investor ' s risk preference may pick up, thus creating a rebound space for Bitcoin.