Bitcoin briefly fell below the $90,000 mark this week as expectations for interest rate hikes intensified and ETF outflows continued, according to QCP Capital. The cryptocurrency's decline highlights its sensitivity to macroeconomic changes, particularly as market expectations for a Federal Reserve rate cut in December have shifted from near certainty to uncertainty.
The market is now focused on upcoming U.S. economic indicators, including labor market data and the Leading Economic Index, to gauge their impact on Federal Reserve policy. Despite the pressure on Bitcoin, the stock market remains stable, buoyed by strong corporate earnings. Federal Reserve Chairman Powell has maintained a cautious stance, indicating that a December rate cut is not guaranteed. The economic outlook suggests a "K-shaped" divergence, with high-income households maintaining spending resilience, while low-income groups face challenges.
Bitcoin Dips Below $90,000 Amid Interest Rate Concerns and ETF Outflows
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