The leading cryptocurrency displayed a macro correlation mentioned by Token Bay Capital founder Lucy Gazmararian last month. BTC shed over 5% in a 24-hour period.
Higher interest rates, such as those maintained by the Fed, tend to counteract demand for risk assets like cryptocurrencies. This likely catalyzed Thursday’s market activity.
The momentum from spot BTC ETF approval and pre-halving hype has cooled. However, Kooner predicted that upcoming data might shape a clearer outlook for the coming months.
Bloomberg’s James Seyffart noted that U.S. spot BTC ETF activity has stalled, particularly in terms of trading volume.
