Macro Threats Send Bitcoin Prices Plummeting Below $77,000
Bitcoin prices dipped below $77,000 on Tuesday, sparking concerns that the cryptocurrency could plummet to $70,000-$71,000 in the near term. This comes as traders anticipate four macroeconomic threats to the market.
The first threat is rising government bond yields, which have climbed above 5% for the first time since mid-2007. This could be bearish for Bitcoin as it increases returns available from safer investments and tightens financial conditions.
Rising oil prices are another concern, with Brent crude reaching $107.37 per barrel on Tuesday. This could increase transportation, manufacturing, and consumer costs, placing renewed upward pressure on inflation.
The Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday, which would be the first rate hike since mid-2023. A sustained tightening cycle could encourage investors to reduce exposure to volatile assets.