Apr 4 2024: The price of Bitcoin experienced a slight decline on Thursday, remaining relatively stable at $65,525.6 amid ongoing uncertainty surrounding U.S. interest rates and a slowdown in ETF activity. Here are the key highlights affecting the cryptocurrency market:
Rate Uncertainty: Bitcoin has been rangebound as mixed signals regarding U.S. interest rate cuts have left traders cautious. Federal Reserve Chair Jerome Powell’s comments on potential rate cuts in 2024 lacked clarity on timing and scale, contributing to market uncertainty.
Nonfarm Payrolls Data: Traders are also awaiting the release of key U.S. nonfarm payrolls data, which has deterred significant trading activity in Bitcoin.
Dollar Weakness: Despite weakness in the dollar, Bitcoin has not gained substantial support, indicating a cautious market sentiment.
Other Cryptocurrencies: XRP experienced a decline of 2.4% to a one-month low, while Ethereum rose slightly to $3,301.48 ahead of an SEC decision on spot exchange-traded funds in May.
ETF Activity: CoinShares data revealed a slowdown in ETF activity, with daily trading turnover decreasing by 36% from its peak three weeks ago. This slowdown suggests waning enthusiasm following the approval of Bitcoin ETFs, which initially fueled a sharp rally in the cryptocurrency market.
The approval of spot Bitcoin ETFs has been a significant driver of Bitcoin’s rally in 2024, leading to record highs exceeding $73,000 in March. However, cooling hype surrounding ETFs and ongoing rate uncertainty are contributing to Bitcoin’s stable yet cautious trading environment.