Bittime – Crypto financial services company Matrixport recently released a report warning of a potential larger Bitcoin correction. The report outlines the reasoning behind their predictions and how macroeconomic factors play an important role in determining Bitcoin's.price direction.
Three Attempts to Break the Record
According to Matrixport, since reaching its all-time high on March 5, Bitcoin has attempted to break through that level three times. However, these three attempts all ended in failure.
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Failure Triggered by Inflation Data
Matrixport explained that the first and third failures in breaking records occurred because inflation data was higher than expected. This high inflation data sparked concern in the market, thereby putting pressure on Bitcoin prices.
Impact of US Interest Rate Policy
A second attempt to break the record also hit a dead end. This happened because expectations of an interest rate cut by the US Federal Reserve (The Fed) were reduced. Hopes for a rate cut were weakened by rising US bond yields along with stronger-than-expected manufacturing data.
Also Read: The Fed's New Priority: Digital Dollar Presented to US Congress
Bitcoin Linkage with Macro Data
Matrixport believes that there is ample evidence to suggest that Bitcoin trading relies heavily on macroeconomic data. If macroeconomic data does not show improvement, such as decreasing inflation or weaker economic growth, then Bitcoin could potentially experience difficulties.
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Will Bitcoin Experience a Major Correction?
Matrixport's prediction of a major Bitcoin correction sparked concern among crypto investors. It is important to note that this prediction is just one point of view on the crypto market. However, it does not rule out the possibility that Bitcoin will experience a larger price correction. Especially seeing the price of Bitcoin which has continued to fall in the last few days.
Apart from macroeconomic factors, Bitcoin prices can also be influenced by various other factors, such as:
- Institutional Adoption: Increasing adoption of Bitcoin by financial institutions may drive Bitcoin prices higher.
- Regulation: Clearer, crypto-friendly regulations from the government could increase investor confidence in Bitcoin.
- Market Sentiment: Overall, crypto market sentiment can also influence the price of Bitcoin.
Matrixport's prediction of a major Bitcoin correction deserves investors to be wary of. However, it is important to conduct in-depth research and consider various other factors that can influence the price of Bitcoin before making an investment decision.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Buy BTC: Wary of Bitcoin Price Correction Amid Market Euphoria?
Bitcoin Price Update: Will the Correction Continue or Rise Again?
BTC Price: Possible Rise or Correction? Analysis of Sell-Side Risk Ratio
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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