(MENAFN- Newsroom Panama) This week, Bitcoin tumbles $5,000 in 24 hours as Treasury yields hit the highest levels of the year, and the US Dollar strengthened and hit a 5 month high.
The big tumble is likely a result of a large bitcoin whale that transferred more than 4,000 bitcoin to Bitfinex Monday night.
On Monday morning, Bitcoin was trading at about $70,000 but Monday night there was that sudden drop.
Investors are looking toward the bitcoin halving, which will slash the reward, and therefore revenue, of bitcoin miners, in the second half of this month. The event could hurt the performance of miners but historically has set bitcoin up for rallies of 300% or more in the months that follow.
The Federal Reserve has quietly primed Bitcoin for a perfect price storm.
United States Fed chair Jerome Powell has signaled an interest rate cut is coming this year, maybe not really soon, but coming in 2024.
The bitcoin and crypto market seems to be holding its breath, waiting for interest rates to give back some of its increases.
Bitcoin continues to struggle to hold a level above its old high, and the whole crypto sector rolled over when interest rates jumped.
Last month, Deutsche Bank analysts predicted a June Fed interest rate cut.
Meanwhile, bitcoin is hurtling toward its next halving, its fourth such supply cut that will see the number of new bitcoin issued to so-called miners who maintain the network fall to 3.125 bitcoin per block, from 6.25 currently.
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