The expectation of lower interest rates from the Federal Reserve and profit-taking drives Bitcoin to continue adjusting.
Bitcoin has rebounded slightly but remains at a low overall, having dipped to a two-and-a-half-week low the previous night. LMAX Group strategist Joel Kruger stated in a report that Bitcoin has been in 'adjustment mode' since reaching an all-time high last week. He noted that this is mainly influenced by U.S. wholesale inflation data coming in higher than expected, which weakened the market's expectations for interest rate cuts from the Federal Reserve. Kruger also mentioned that part of the sell-off may be related to profit-taking by short-term accounts, and it could also be linked to recent statements from the U.S. Treasury Secretary—namely, that strategic Bitcoin reserves will not be expanded through new purchases.
