Factors Driving the Bitcoin Price Dip to $68,000

Inflation Data Concerns

• The Consumer Price Index (CPI) data release on April 10 is expected to show a rise in inflation.
• This could prompt the Federal Reserve to raise interest rates, which is typically bearish for Bitcoin.
• Investors are cautious ahead of the report, leading to a decline in Bitcoin’s price.

Spot Bitcoin ETFs

• Spot Bitcoin ETFs have experienced net outflows on April 8 and 9.
• Grayscale Bitcoin Trust (GBTC) saw significant outflows of $303.3 million and $154.9 million.
• Demand for other Spot Bitcoin ETFs has slowed, with minimal inflows recorded.

Implications

• Bitcoin is currently trading at around $69,300, down over 2% in the past 24 hours.
• If inflation data comes in higher than expected, it could further impact Bitcoin’s price negatively.
• The Fed’s hawkish stance on interest rates could also weigh on Bitcoin’s value.