Crypto Quill

In a volatile turn of events, Bitcoin (BTC) experienced a brief dip below the $60,000 mark, following a 4.61% decline. However, the price has since recovered to hover around $60,400. Let’s delve into the details of this market movement.

The Recent Fluctuations

Bitcoin’s value has been on a rollercoaster ride this week. After reaching an all-time high (ATH) earlier, profit-taking triggered a sudden downturn. Leveraged long liquidations pushed the price briefly below $60,000. Yet, strong net inflows into spot Bitcoin ETFs provided robust support, preventing a more significant drop.

Macro Factors at Play

On Thursday, macro headwinds influenced the market. US Federal Reserve Chair Jerome Powell’s dovish remarks hinted at potential interest rate cuts. Traders responded by increasing bets on near-term rate reductions. As short-term US yields fell, the US dollar weakened, supporting tech stocks and, consequently, cryptocurrencies.

Looking Ahead

Traders are closely monitoring whether Bitcoin can retest Tuesday’s ATH before the week concludes. While some express nervousness about rapid rallies, others believe the influx of demand from spot Bitcoin ETFs could alter historical patterns around halving events. Amid these macro tailwinds, Bitcoin may push into the $70,000s and beyond.