Bitcoin’s been having a rough week, sitting around $112,600 after dropping nearly 3% since Monday. The whole crypto market feels pretty shaky right now, and there are a couple of big reasons why traders are getting nervous.
Fed Chair Jerome Powell basically threw cold water on everyone’s rate cut party on Tuesday. He made it clear that the central bank isn’t going to go crazy with cutting rates, saying they need to balance inflation concerns with job market weakness. That’s not what crypto investors wanted to hear since lower rates usually help Bitcoin and other risk assets.
Powell’s comments helped boost the dollar, which is bad news for Bitcoin since the two usually move in opposite directions. When the dollar gets stronger, people tend to move money out of crypto and into traditional assets. The market’s now waiting for more economic data this week, including GDP numbers and inflation figures that could shake things up even more.
But it’s not just the Fed that’s got people spooked. Geopolitical tensions are ramping up again with NATO warning Russia about military responses and ongoing conflicts in the Middle East. When the world gets messy, investors usually run to safer assets, and Bitcoin definitely doesn’t qualify as safe in most people’s minds.
The institutional money that’s been flowing into Bitcoin ETFs has also started heading for the exits. Tuesday marked the second straight day of outflows, with over $100 million leaving Bitcoin spot ETFs.
Conclusion
Bitcoin’s slide reflects a storm of hawkish Fed signals, a stronger dollar, geopolitical flare-ups, and ETF outflows—leaving traders bracing for more volatility as upcoming economic data could further rattle the market.
Also Read: Bitcoin Price at Pivotal Point
