Main Points Related to Bitcoin, Web3, Ethereum, and Cryptocurrency:
- U.S. macroeconomic uncertainty impacts Bitcoin prices.
- Fed’s decision on interest rates influences Bitcoin performance.
- Non-Farm Payrolls (NFP) report may affect Bitcoin and BTC ETFs.
- Bitcoin’s appeal as an inflation hedge could rise with future rate cuts.
- Spot BTC ETF activity shows signs of stagnation.
Impact of U.S. Macroeconomic Uncertainty on Bitcoin:
Bitcoin experienced a dip to a two-month low due to U.S. macroeconomic uncertainty, which led to a decrease in risk appetite among investors. The Federal Reserve’s decision to maintain current interest rates until economic data supports loosening policies contributed to this market movement.
Influence of Fed’s Interest Rate Decision on Bitcoin:
The Federal Reserve’s decision to hold off on interest rate cuts indicates a cautious optimism regarding inflation trends. This decision affects demand for risk assets like cryptocurrencies, as higher interest rates typically dampen investor interest in such assets. As a result, Bitcoin saw a decline in value over a 24-hour period following the Fed’s announcement.
Impact of Non-Farm Payrolls (NFP) Report on Bitcoin and BTC ETFs:
The upcoming Non-Farm Payrolls (NFP) report could potentially shift expectations for future rate cuts, impacting Bitcoin’s performance. If market participants anticipate rate cuts in response to economic uncertainty, Bitcoin’s appeal as an inflation hedge may rise, leading to increased capital flow into spot BTC ETFs. However, recent trends suggest a lack of significant flows and buying interest in Bitcoin-related assets, signaling a potential slowdown in activity within the market.
