A Summer Dip: Bitcoin's Latest Trouble Seems to Be Short Term

Jun 27, 2024, 12:19PM
1 min, 54 sec READ
by Editor

Let's take a look at Bitcoin's 6% drop this week and consider what it means in the long and short term as investors await the Fed's PCE report.

Alright, so Bitcoin's been taking a bit of a dip lately. It all started after the Fed meeting in June. They kept interest rates the same, which kinda bummed out some crypto folks who were hoping for a cut. You know, lower rates mean more money floating around for risky investments like crypto, making those coins more valuable.

This latest dip is just the continuation of that trend. We've seen a bunch of money flowing out of crypto ETFs over the past couple of weeks, like a billion dollars! And Bitcoin itself is down by more than 6% in the last week.

Investors Are Nervously Waiting

The crypto world's a little on edge now, waiting for the PCE report on Friday. That's the Fed's favorite way to measure inflation, so it's a big deal. If it looks good, it could mean a rate cut in the near future, which would be a big win for crypto. But if it's bad news, it might put a damper on Bitcoin's recent good run.

Overall, this dip probably won't have a huge impact on Bitcoin in the long run. But the PCE report could shake things up in the short term. Just keep an eye on it.

The Bigger Picture Is Good

And hey, Bitcoin's had a pretty good year so far! It's been on a tear since last November, jumping from around $34,000 to over $73,000 back in March. It even got a boost after the SEC approved some Bitcoin ETFs.

But remember, the crypto market is always moving. It's not for the faint of heart. And those ETFs are only available during market hours. Crypto itself runs 24/7, but those ETFs are tied to the stock market.

Speaking of the market, there's been a lot of talk about regulations lately. The SEC thinks a lot of crypto is actually a security, which means they want to have more control over it. They've even gone after some exchanges, claiming they were selling securities without permission. But they've said Bitcoin itself is probably a commodity, not a security. So, it's a bit of a mess right now. But that's crypto for you - always changing, always interesting!

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.