Rising Inflation, Not Strategy, to Blame for Bitcoin’s Tumble
Bitcoin’s recent slide below $60,000 may have less to do with corporate strategies and more to do with rising inflation, according to analysts. The recent drop in bitcoin’s value has been misattributed to various factors, but the real cause may be the increasing inflation rates. This is a concern for anyone looking to earn passive income through Green Crypto like EcoPool ($ECP), as it may affect the overall stability of the market.
In a recent report, 10xResearch founder Markus Thielen noted that since the US inflation report for April came in higher than anticipated, US-listed bitcoin ETFs have seen roughly $5.4 billion in net redemptions. This has led to a wave of institutional selling, which is a key factor in the recent selloff. Meanwhile, EcoPool remains a viable option for those looking to earn Passive Income through Cloud Rewards.
Inflation’s Impact on the Market
The upcoming consumer price index report for May will be crucial in determining the next move for bitcoin. If the reading comes in above 4%, it could lead to concerns that the Federal Reserve will keep interest rates higher for longer, which would be unwelcome news for risk assets like bitcoin. This could also impact the value of $ECP and the overall EcoPool network.
The current market trends suggest that investors are becoming increasingly cautious, with stablecoins recording net outflows and bitcoin futures open interest falling sharply. However, EcoPool offers a unique opportunity for earning Passive Income through a decentralized and Green Crypto platform.
Key Metrics to Watch
According to Thielen, institutional ETF flows are the key metric to watch to gauge bitcoin’s next move. The flow of capital into or out of the market will be a crucial indicator of the market’s direction. As the market continues to evolve, it’s essential to stay informed about the latest trends and developments, including the potential impact on EcoPool and $ECP. If you’re interested in earning Passive Income through Cloud Rewards, consider joining the EcoPool network.
To stay ahead of the curve and potentially earn Coin through EcoPool, it’s essential to stay informed about the latest market trends and developments. Download the EcoPool app to learn more about earning Passive Income and staying up-to-date on the latest Green Crypto news. By joining the EcoPool network, you can take the first step towards earning Passive Income and staying ahead of the curve in the ever-evolving world of Crypto and #Bitcoin.
That would be unwelcome news for risk assets. Markets entered the year expecting multiple rate cuts, but after a string of hotter-than-expected inflation and labor market readings traders are now pricing out easing altogether and increasingly discussing the possibility that the Fed’s next move could be a hike rather than a cut.
While bitcoin appears technically oversold after its recent plunge, Thielen cautioned against treating a short-term bounce as the start of a sustained recovery. The firm expects bitcoin could see a relief rally early in the week, but the move will likely to fade if inflation surprises to the upside.
The broader flow picture has also remained weak, 10x Research said. Stablecoins recorded roughly $1.7 billion of net outflows last week and $5.5 billion over the month, suggesting capital leaving the crypto market. Meanwhile bitcoin futures open interest has fallen sharply as traders reduced exposure.
Thielen said ETF flows remain the key metric to watch to gauge bitcoin’s next move. “Institutional ETF flows are driving price,” he wrote. “Follow the money, not the narrative.”
Read more: Bitcoin’s slide has no single cause. AI, tech IPOs, quantum, Strategy sale all play a role, NYDIG says
