The post Bitcoin Price Drops to $35,000 but Analysts Continue to Be Optimistic appeared on BitcoinEthereumNews.com.

Grayscale is optimistic that the easing of CPI data will provide a boost to Bitcoin going ahead while the expectations of spot Bitcoin ETF approval remain high. Over the last two days, the Bitcoin price has come under some selling pressure dropping another 3% in the last 24 hours and moving closer to $35,000. Bitcoin (BTC) encountered fluctuations on Tuesday following the release of the October Consumer Price Index (CPI) report by the United States Bureau of Labor Statistics (BLS). The data disclosed a reduction in inflation, standing at 3.2%, slightly below the anticipated 3.3%, and a decline from September’s 3.7%. In the traditional markets, there is a prevailing sentiment that the Federal Reserve has concluded its rate hikes and might even consider rate cuts in the first half of 2024. In the latest session, the Nasdaq surged by 2.3%, marking a monthly gain of over 10%, while the S&P 500 rose by 1.8%. Bond markets experienced notable shifts, with the 10-year Treasury yield plummeting by 20 basis points to 4.44%. This contrasts with the situation just three weeks ago when the yield had surpassed 5% for the first time in over 16 years. The US dollar also reflected this trend, witnessing a substantial 1.55% decline in the DXY Index. Despite the challenging session for cryptocurrencies, Grayscale, an investment management firm, suggests that the combination of slower inflation and reduced bond yields could lend support to crypto prices, as stated in their Tuesday report. The world’s largest asset manager noted: “We believe the recovery in crypto valuations can continue if real interest rates peak and we continue to see progress toward spot ETF approvals in the US market.” Bitcoin ETF Expectations The entire crypto community has glued its expectations on the approval of the spot Bitcoin ETF as the SEC will…

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Filed under: News - @ November 15, 2023 1:16 pm