Bitcoin (BTC) slips after reaching a new price record

After closing in on the 74,000the Bitcoin rate (BTC) a backward by more than 7% while US inflation datamore high than expected, fuelled the concerns from investors.

The price of Bitcoin (BTC) has recorded a significant decline over the past 24 hours, dropping below $66,800 on Friday night before rebounding slightly. At the time of publishing this article, its price is hovering around $68,300, down around 7%.

Bitcoin (BTC) 24-hour price – CMC

Yesterday’s report of rising US producer prices impacted equity markets. The higher-than-expected US inflation indicator cast doubt on the timing and extent of Federal Reserve interest rate cuts in 2024.

According to Tony Sycamore, analyst at IG Australia, Bitcoin was “undermined by the rise in US yields and the US dollar that followed hot producer price inflation data”.

Profit-taking by crypto investors no doubt also pushed the BTC price down as the digital coin hit a new ATH of over $73,800 on Thursday.

The runner-up in the cryptocurrency market, meanwhile, saw its price slide 6% to around $3,700. Ethereum (ETH) recently completed a hard fork. For some analysts, Dencun’s launch could have triggered a “sell the news” scenario. In any case, the update has drastically lowered fees on Layer 2 solutions.

Other experts see Bitcoin’s slowdown as a typical pause observed after a sharp price increase.

“The historic trading volume on Blackrock’s Bitcoin ETF has caused some unease in the market, with some stakeholders fearing that the Bitcoin price will rise too much too soon and experience a flash crash. The correction indicates that the market is adjusting its expectations of Bitcoin, also given the uncertainties presented by halving,” commented Metalpha boss Adrian Wang.

This week, the giant BlackRock’s BTC spot fund recorded further significant inflows. The ETF now holds over 200,000 bitcoins.

Next month, Bitcoin will make its 4th halving. Rewards for network miners will be divided by 2.

Keep up to date with the latest crypto news on our Twitter or Telegram