BTC Bears Eye Break Below $60,000 as ETF Flows Slow, Macro Headwinds Grow – Here’s Where the Bitcoin Price is Headed Next
Bitcoin (BTC) bears are eyeing a break below the key psychological $60,000 level, with ETF flows having slowed this week, and macro headwinds continuing to pile up, with some predicting that the Bitcoin price could be headed towards $50,000 next.
The Bitcoin price briefly dipped as low as the $59,800s on Wednesday. But the world’s largest cryptocurrency by market capitalization has since recovered to the $60,400s, down around 5% on the day.
According to data presented by The Block, net ETF flows have been negative so far this week. That’s thanks to continued, albeit still slowing GBTC outflows of $110 million on Monday and $80 million on Tuesday.
At current levels, the Bitcoin price is down around 18% since the record highs it posted near $74,000 last month.
But as macro headwinds grow ahead of the halving on Saturday, price risks could be tilted towards further losses.
US bond yields and the US Dollar Index (DXY) recently vaulted up to their highest levels since last November.
US economic data has come in stronger than expected in recent weeks, forcing the Fed to turn more hawkish. Fed Chair Jerome Powell emphasized a lack of progress on inflation this week.
All this has forced investors to substantially downsize Fed rate cut bets. As per the CME’s Fed Watch Tool, the money market implied probability of a July rate cut has faded to under 45% from around 80% one month ago.
This has hit risk assets across the board. As Bitcoin probes $60,000, the S&P 500 is down 5% from its recent peak and at its lowest in nearly two months.
Of course, elevated geopolitical tensions in the Middle East between Iran and Israel have also dented sentiment recently. The threat of another major war that could have an equally disruptive impact on global
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