Bitcoin Drops Below $67,000 Again! Will the Decline Continue? Here Are the Details

Bitcoin fell below $67,000 in early trading, increasing selling pressure as the more hawkish macroeconomic outlook from the US was priced in. Ethereum dropped 4.1% to $1,965, while XRP fell 4.3% and BNB dropped 4.5%.

Analysts attribute the recent sell-off in the crypto market largely to changing expectations regarding US monetary policy. Andri Fauzan Adziima, head of research at Bitrue, stated that there has been a “hawkish shift” in expectations regarding the Fed following the nomination of Kevin Warsh as Fed chairman.

According to Adziima, this situation has reinforced expectations of tighter liquidity and fewer interest rate cuts in the market. The analyst said that investors are now watching to see if support will form in the $60,000-$65,000 range for a possible recovery.

Vincent Liu, CIO of Kronos Research, pointed out that derivatives market data indicates that excessive leverage has largely been eliminated. Liu stated that funding rates show a significant portion of leveraged positions have been closed, and institutional capital is awaiting clearer catalysts such as ETF momentum or new macroeconomic signals.

On the other hand, spot Bitcoin ETFs saw net inflows of $166.56 million on Tuesday. Inflows into spot Ethereum ETFs were more limited at $13.82 million.

Globally, Asian stock markets rose while the US S&P 500 and Nasdaq declined. Investors will be watching the US employment data to be released on Thursday.

*This is not investment advice.