Why Bitcoin Price is Down Today?

coinpediacrypto - 2024-05-11 09:11:09

Bitcoin's bullish trajectory faces hurdles amidst tightening economic conditions in the U.S., with recent inflation data exerting notable downward pressure on BTC prices. Within hours, prices nosedived from $63,446 to $60,763.


Impact of Inflation Data

University of Michigan consumer sentiment data for May month unveiled a significant downturn, dropping from April's 77.2 to 67.4, marking a six-month low. This figure fell short of market expectations set at 76. Concurrently, inflation expectations for the upcoming year surged to 3.5%, hitting a six-month peak compared to April's 3.2%. Moreover, the five-year inflation outlook rose to 3.1% from 3.0%.

Cautious Federal Reserve Remarks

Federal Reserve officials' statements have notably reflected caution, adding to economic uncertainties. Lorie Logan from the Fed highlighted substantial inflationary risks, underlining the necessity for adaptable policy decisions. Similarly, Federal Reserve Governor Bowman echoed such sentiments, emphasizing the importance of maintaining policy stability over an extended period.

Crypto Market Liquidation

The cryptocurrency market experienced substantial liquidation, with Coinglass data indicating over $150 million liquidated across various cryptocurrencies within the past 24 hours.

Bitcoin ETF Market Dynamics

Despite prevailing negative sentiment, contradictory signals emerge within the Bitcoin ETF market. SoSoValue, a platform monitoring ETF market activity, reported a net outflow volume of $11.29 million on May 9. Notably, Grayscale's GBTC witnessed a withdrawal of $43 million, further complicating market dynamics.

For more detailed insights into Bitcoin's current challenges and market dynamics, delve into the comprehensive analysis provided below.