Bitcoin Plunges to $58K After US CPI Data, $81M Withdrawn from Bitcoin ETF
Date: 2024-08-15 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
On Thursday, the price of Bitcoin (BTC) fell more than 4%, falling to around $58,000, leading other major cryptocurrencies such as Ethereum (ETH), Solana (SOL), Cardano (ADA), BNB Chain (BNB), and Ripple (XRP) to fall. These assets saw declines ranging from 2.5% to 3.8%.
The main reason for the decline was the release of US Consumer Price Index (CPI) data for July. The year-over-year increase in the index was 2.9%, which was in line with forecasts and the first time since 2021 that the index was below 3%. While the NASDAQ and S&P 500 indices pared early losses and ended the day higher, Bitcoin continued to decline after the release of the CPI data. Cryptocurrencies have shown high sensitivity to US economic data in recent months, as investors turn to more stable assets amid economic uncertainty.
Some traders are forecasting a further decline in the BTC price to $55,000 in the short term, before a possible rally. This could lead to additional losses for the major tokens. FxPro analyst Alex Kuptsikevich noted: "A new wave of sell-off remains a likely scenario, with a possible pullback to $55K. However, data supporting imminent Fed easing could inspire bulls to overcome the short-term downtrend and push the price to $66K."
In addition, US spot Bitcoin ETFs saw net outflows of $81 million on Wednesday, ending a two-day streak of positive performance. Grayscale’s GBTC ETF saw the biggest losses, with $56 million being withdrawn. It was followed by Fidelity’s FBTC ETF with an outflow of $18 million, and Ark Invest’s ARKB and Bitwise’s BITB funds, which lost $6.7 million and $5.7 million, respectively.
In summary, the current decline in the price of Bitcoin and its impact on other cryptocurrencies indicate continued volatility in the market, which requires investors to be extra cautious in their decisions.
