Bitcoin's price movement today has been influenced by a combination of macroeconomic factors and market dynamics. The cryptocurrency market is reacting to the reassessment of Federal Reserve rate cut expectations by major investment banks, following a strong U.S. jobs report. Goldman Sachs and Bank of America have adjusted their forecasts, with Goldman now expecting fewer rate cuts in 2025. This shift in monetary policy expectations has contributed to Bitcoin's decline, as the market anticipates a potential pause or even a rate hike, which could impact liquidity and investor sentiment.
Additionally, the crypto market is experiencing a significant drop in capital inflows, with a 56% decline over the past month, as reported by analyst Ali Martinez. This reduction in investment activity suggests a cooling off period, which is reflected in Bitcoin's price movement. The network activity for Bitcoin has also hit a two-month low, raising concerns about decreased investor interest. These factors, combined with the broader market sentiment, have put pressure on Bitcoin's price, leading to its current downward trajectory.
Bitcoin is currently trading at $92,852.09, marking a 1.73% decrease today. The cryptocurrency reached a high of $95,761.76 and a low of $92,615.48 during the day.