The sharp drop in the BTC rate may be due to investor concerns about inflation data in the US

Over the past 24 hours, Bitcoin has lost about 3% in price. According to Coinmarketcap, the price of the main crypto coin is around $67,3000.

Following Bitcoin, Ethereum also came under pressure, losing more than 3%. Altcoins and meme coins are also in the red zone.

The decline in the Bitcoin price occurred against the backdrop of another outflow of investor capital from American exchange-traded funds based on BTC for the first time after 19 consecutive days of inflows. Investors withdrew $64 million from the Bitcoin ETF; the largest withdrawal was from the Grayscale ETF — the outflow of client money reached $39.5 million.

Analysts attribute the fall in BTC value to investors’ concerns about information about inflation in the United States, which could tighten the Fed’s position.

As Anand Gomez, co-founder of the derivatives service Paradigm, noted, the cryptocurrency market is also affected by the lack of news.

“The market is like an addict that constantly needs bullish news to stay afloat. So when there is no resistance, the path of least resistance is lower,” he said.

Santiment pointed to a drop in activity on the Bitcoin network to its lowest level since the end of April this year. The average daily number of addresses that send and receive funds each day previously fell below 650,000.

Experts attribute the fall in the price of the first cryptocurrency to weak transaction activity. Market participants also expect the publication of information on inflation in the United States, which should appear on Wednesday.

If inflation is higher than expected, the Fed will likely not cut interest rates. And investors will again stop investing in risky assets, including cryptocurrencies.

Experts from Macquarie believe that monetary policy will not be eased until next year. Experts surveyed by Dow Jones predict an increase in prices in the US by 3.4% in annual terms.

What do you think about such forecasts?