Bitcoin (BTC) price is recorded above $101,000, though a 3% daily decline has been noted. This drop primarily affects alternative cryptocurrencies, raising questions about the reasons behind such a turn of events and the expected future.
Reasons Behind Cryptocurrency Decline
Bitcoin failed to conquer the resistance area above $105,000, leading to a natural downturn. Moreover, customs tariff rates continue to exceed their March levels. This swift market reaction is reminiscent of previous recession worries.
Bitcoin and Cryptocurrency Forecast
Rumors of a potential diminishment of tariff impacts have not yet reflected significantly in ETF data. Expected ETF inflows near today's closure could provide support. Persistent net inflows over the past weeks are likely to strengthen market conditions.
Overall Situation in the Cryptocurrency Market
May traditionally marks the beginning of the 'sell and go on vacation' mindset. Discussions suggest that tariffs may have lasting effects, raising recession concerns until August. The anticipated CPI data release with a 2.4% rise could act as a crucial trigger for short-term traders.
The situation in the cryptocurrency market remains tense; however, Bitcoin has managed to maintain six-figure levels. Investors continue to monitor developments regarding tariffs and potential positive changes that could influence market support.
