Bitcoin and Ethereum Prices Drop Over 3% and 2% in 24 Hours
Bitcoin and Ethereum experienced significant price declines in the last 24 hours, with drops of over 3% and 2%, respectively. This bearish trend is linked to macroeconomic developments and investor sentiment.
Reasons for Price Decline
- U.S. Treasury Secretary Scott Bessent stated the government will not purchase Bitcoin, impacting investor outlook.
- The U.S. holds between $15 and $20 billion in Bitcoin but plans to utilize confiscated assets instead of additional purchases.
- Bessent's comments suggest Congress may not pursue the BITCOIN Act, which aimed to buy 1 million BTC over five years.
- Despite earlier reports of sales, U.S. holdings are confirmed at 198,022 BTC, worth around $23 billion.
Impact of U.S. PPI Data
- Recent U.S. PPI data showed inflation rose to 3.3% YoY, exceeding expectations of 2.5%.
- Monthly PPI was reported at 0.9%, higher than the anticipated 0.2%.
- This inflation data has decreased the likelihood of a Federal Reserve rate cut in September from 99% to around 93%.
- Rising inflation could limit investment in risk assets like Bitcoin and Ethereum.
