Bitcoin Price Drop Causes Crypto Market to Slide
Bitcoin is pulling down much of the crypto market with its slight down tick as a result of government funds seizures.
Bitcoin (BTC) is falling once more, down 0.34% over the previous day and selling at $61,274 (BTC/USD) at the moment.
Much of the cryptocurrency market is down as well, with major players Ethereum, BNB, and Solana all dropping alongside Bitcoin. These coins have dropped 0.25%, 0.54%, and 2.12% respectively over the last 24 hours.
Much of the drop has been attributed to recent Bitcoin selloffs by government agencies. The German government transferred out millions in Bitcoin over the last week, and the US government seized $240 on Wednesday. The US authorities confiscated their millions from the online black market Silk Road, and their withdrawal has been open of the major contributing factors this week that has held Bitcoin back from climbing higher.
Analysts expected Bitcoin to start recovering this week and moving toward $63,000, but it has been hindered by mild inflation data as well as by government seizures. The US funds seized by the government were from illegal narcotics dealers and will stay in a US government-owned wallet for now.
Where Is Bitcoin Headed?
There is upcoming inflation data to consider this week. The personal consumption expenditures report will be out later today, and it is one of the main inflation indicators that the Federal Reserve looks at when determining what the overall inflation trajectory is.
Housing data is also coming out still this week, and it is expected to show slight improvement. Analysts anticipate lower prices and more housing availability.
These reports could work in Bitcoin’s favor, giving the market a small boost. We do not expect to see significant positive news coming from these reports and shifting the market considerably, but there could very well be a minor boost in the next day or two.
Bitcoin has fallen considerably over the last week, and it could be time for a price correction and even a bullish trend. That will partially hinge on what these economic reports say, though.
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