After showing flashes of brilliance early in the day, Bitcoin price is now firmly trading under $80K amid fears for a steeper drop. The drop in prices follows the release of US economic job data as Bitcoin (BTC) finds its bearing amid macroeconomic uncertainties. Bitcoin Price Falls Under $80K According to CoinMarketCap data , Bitcoin price has slipped under $80K again after showing glimpses of promise early in the day. BTC currently exchanges hands at $79,511, a steep drop of nearly 4% over the last 24 hours. Bitcoin price reached a daily high of $83,541 before reversing toward lows of under the $80K mark. Prices traded for as low as $78,456 leaving investors scratching their heads over price performance. The largest cryptocurrency looked set for a parabolic rally following the release of US CPI data. Per the data, the US CPI inflation rate settled at 0.1%, sparking belief for Bitcoin’s massive breakout ahead of an imminent Fed rate cut. Within hours of the data release, BTC soared by 8% before hitting a glass ceiling and tumbling below $80K. Why Did Bitcoin Slump? The BTC price decline is a response to rising global trade tensions stoked by the US and China. The back-and-forth tariffs are forcing the hands of investors to pull funds from risk-on assets to safe-haven alternatives. Investors are funneling funds to gold and US treasuries given Bitcoin’s decoupling from the tech-heavy S&P 500 to earn the tag as an uncorrelated asset. Bitcoin and other cryptocurrencies are facing dire risk of price slumps as a result of the China-US tariff wars . Despite the positive fundamentals in the space, macroeconomic events are affecting Bitcoin in the short term. However, cryptocurrency analyst Axel Adler describes the macro-fuelled slump as a healthy consolidation for BTC price. Adler notes that despite the slump Bitcoin price is still demonstrating “resilience to external economic shocks.” “The current correction looks like a healthy consolidation rather than a sign of deep crisis as holders perceive market and geopolitical risks less critically than direct technological threats,” said Adler. The post Why Is Bitcoin Price Dropping Today? appeared first on CoinGape .
https://www.digistore24.com/redir/325658/ceobig/
