1 min readFirst correction in current uptrend for bitcoin
Bitcoin's decline on Tuesday, hitting $61,000, marked its worst daily performance since November 9 2022, down 8.39%. We see several factors that have contributed to this downturn. Reportedly, a $1 billion basis trade failure on the MSTR-BTC spread sparked negative momentum, exacerbated by stronger-than-expected inflation data raising concerns over delays in interest rate cuts. Additionally, net outflows from GBTC and a sudden drop in BitMEX's BTC prices due to a large sell-off further destabilized the market.
This week will be crucial to see whether or not bitcoin finds support in the $60k area, or if it's due for a larger correction, but we should expect these events during a bull market. Meanwhile, uncertainties loom around the ETH ETF decision, potentially delayed to Q3 due to regulatory issues.
On the macro side, the recent FOMC meeting highlighted that Chair Powell will stick to the line that the Fed needs to see more good inflation data before it is convinced that it is safe to cut rates, arguing that the recent run of disappointing numbers haven't changed the economic outlook.
