Bitcoin has fallen sharply following weak US economic data and hawkish comments from Dallas Federal Reserve Bank President Lori Logan.
Cryptocurrency markets plunged Friday morning, reversing an earlier rally that had propelled the world's largest cryptocurrency to $64,212 this week.
Bitcoin (BTC) is trading at $61,015, down 2% in the past 24 hours. Ether (ETH) fell nearly 4%, while Dogecoin (DOGE) fell more than 3.5%. Most digital assets in CoinGecko's top 100 have posted losses.
The drop in crypto prices was triggered by disappointing US economic data and Dallas Fed President Lori Logan's hawkish comments.
“It's too early to think about cutting rates,” Logan said Friday at an event in New Orleans. “We need to make sure that some of these uncertainties are resolved about the path we take, and we need to remain very flexible on policy and keep an eye on the data that comes as the financial situation evolves. We need to continue to monitor how things progress.”
Consumer sentiment data released Friday morning showed a significant rise in inflation expectations, dampening market enthusiasm. The University of Michigan's Consumer Confidence Index for May came in at 67.4, well below the Dow Jones estimate of 76 and the lowest reading in six months.
Since its July 2023 meeting, Fed officials have kept the U.S. benchmark interest rate in a stable range of 5.25% to 5.5%.
Token unlock coming soon
Crypto analysis firm 10x Research reported on Wednesday that $2 billion worth of tokens will be added to circulation over the next two months.
According to the report, Aptos (APT) is worth $97 million, Starkware (STRK) is worth $79 million, Arbitrum (ARB) is worth $94 million, Avalanche (AVAX) is worth $330 million, and SUI (SUI) is worth $10 million. It's nearly a billion dollars. It will be unlocked.
“The altcoin market could decline if nearly $2 billion in token unlocking continues rapidly over the next 10 weeks,” 10x Research said in a report obtained by The Defiant.
According to Michael Van de Poppe, CEO of MN Trading, Bitcoin is currently in a low price zone.
“This is technically a desirable area to hold, so the upward momentum continues and the range holds,” he said. Said “If this is not the case, we could expect $52,000 to $55,000 as a potential low for this correction.”
Grayscale Bitcoin Trust sees inflows
Grayscale Bitcoin Trust (GBTC) saw inflows of $66.9 million in May and experienced sustained outflows totaling over $17.5 billion over the past 78 days after converting to an ETF on January 11th However, things have changed completely.
Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT) has raised the most funds to date, totaling nearly $15.5 billion.
