$BTC

Bitcoin (BTC) has been experiencing a recent downturn. Here are the key factors contributing to its decline:

1. Macroeconomic Pressure:

• Tariffs and Inflation: The U.S. has imposed new tariffs, which can increase supply chain costs and inflation, affecting investor confidence in risky assets like BTC.

• Interest Rate Uncertainty: Fluctuating expectations about future interest rate changes by the Federal Reserve have added to market uncertainty.

2. Market Correlation:

• Equities Market Influence: Bitcoin’s correlation with U.S. equities has increased, meaning when stocks fall, BTC often follows.

• Options Market Volatility: Expired options contracts have contributed to price swings, adding to market instability.

3. Regulatory and Institutional Factors:

• Regulatory Uncertainty: Despite some pro-crypto appointments, regulatory clarity remains elusive, impacting investor confidence.

• Institutional Withdrawal: Recent outflows from Bitcoin ETFs indicate reduced institutional interest, contributing to the price drop.

4. Accumulation and Panic Selling:

• Whale Accumulation: Large investors are buying BTC, but this hasn’t offset short-term selling pressure.

• Panic Selling: Newer investors are selling off, exacerbating the decline