The post Why Altcoins’ Prices Are Falling & When Will They Recover? appeared on BitcoinEthereumNews.com.

The altcoin prices have noted volatile trading over the past few days, with Ethereum, Solana XRP, and others noting declines. Meanwhile, the decline in the broader crypto market also followed a slump in Bitcoin price, sparking discussions over potential reasons behind the slump. A flurry of macroeconomic factors and global trends could have weighed on the recent sentiment recently. So, here we take a look at the top reasons behind the recent drop in prices. Why is Altcoins Prices Falling? Some of the top reasons behind the recent selloff include: Bitcoin ETF Outflow After witnessing robust inflows for the past few weeks, the U.S. Spot Bitcoin ETF recorded an outflow of $200.4 million on Monday, June 11. This sudden reverse in trends has weighed on the broader market sentiment, which could have contributed to the recent slump in the altcoin prices. The robust inflow into Bitcoin ETFs has so far boosted the market optimism, triggering a rally in the Bitcoin price over the past few weeks. In addition, the altcoins prices also followed suit, witnessing significant gains, before noting a decline from last week. U.S. Job Data Triggers Altcoin Decline Last week’s U.S. Job data came in stronger than expected, dampening hopes of the investors over a potential dovish stance by the U.S. Federal Reserve. Notably, the Federal Reserve has maintained a hawkish stance so far this year with their policy rate plans, to combat the red-hot inflation. Having said that, the European Central Bank (ECB), which has also maintained a similar stance, announced a rate cut last week. Although anticipations for a similar move by the U.S. central bank also soared following that, the labor market data has diminished hopes, as the market awaits further economic clarity. Also Read: FED Meeting June 2024- Why The Interest Rate Cuts Might…

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Filed under: News - @ June 12, 2024 4:28 pm