© Archyde.com. Bitcoin (BTC) Price Drops Below $27,000 on Three Factors
Bitcoin (BTC) price broke below key support on Thursday. As the crypto market is under increasing pressure Most recently, it happened because of US inflation data. higher than expected But there are other factors. that drives investors out of the crypto space.
BTC traded 3.9 percent over the past 24 hours to 28,209, its lowest level since December 2020. BTC has now tumbled nearly 66% since hitting a record high in November last year. last
BTC’s heavy fall this time might bring bitcoin prices closer to a bottom, with veteran analyst Peter Brandt seeing the $27,000 level as a possible low.
Bitcoin’s fall below $27,000 was due to three factors:
1. The beginning was caused by US inflation.
Bitcoin was trading at around $31,000 ahead of the release of the US CPI report on Wednesday. But it eventually dropped to $28,000 within minutes. After the information came out higher than expected.
Although slightly lower than March’s data. But it shows that inflation takes a long time to fall. This will encourage the US Federal Reserve. proactively raise interest rates This would be a very negative situation for BTC, the Fed or the Federal Reserve’s interest rate hike. At the beginning of this month, BTC has been hit hard.
2. Stock Market Price Drops Following Bitcoin
US inflation data The stock market also dropped sharply, with the S&P 500 dropping 1.7 percent, while the Nasdaq Composite, which is closely correlated to BTC, fell more than 3 percent.
due to relationship (Correlation) of BTC price with US stock market That used to be a record high And it looks like this stock market drop will also affect BTC, with Asian stocks falling sharply on Thursday. This causes additional negative pressure for …
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