Bitcoin drops as Wall Street lacks confidence

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Last Updated on 3 April 2024 by CryptoTips.eu

Bitcoin tumbled nearly 5% lower on Tuesday as investors reassess their positions after the Easter weekend. Rumors about an impending crash in tech stocks are on the rise again, causing risky investments to be hit first and hardest.

Yet analysts do not think this is the start of a new correction as Bitcoin (of which the largest digital currency already experienced two this year).

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Economy

Bill Clinton surprisingly won the American presidential elections of 1992 using the slogan ‘it’s the economy, stupid’. This simply emphasized the fact that for the average American voter, the economy is all that really matters.

That economy is still doing surprisingly well and the data that emerged yesterday (ISM factory index) also shows that the largest economy in the world continues to grow faster than its peers. Thus the dollar went higher (bad for Bitcoin).

This also means that the likelihood of an interest rate cut by the Federal Reserve in June is now somewhat lowered again, so investors are taking risky investments off the table wherever they can.

Lastly, this titbit of info also fuels more rumors about an impending tech crash (a story fueled by the recent stock sales by billionaires like Peter Thiel, Jeff Bezos and Mark Zuckerberg) and a cryptocurrency sell-off.

I however still agree with the popular Dutch analyst Cryptojelle who stated yesterday that the current drop in the Bitcoin price only serves to shake out the weaker investors before we turn to price discovery again (aka hit a new record).

In my opinion, this moment of weakness in the crypto market could last a few days, but there is no reason to panic yet.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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