Summary
Bitcoin took a hit, falling below $69,000 before recovering to over $70,000. This drop may have been caused by higher than expected inflation data, leading to speculation that the Federal Reserve may not cut interest rates. Grayscale also shifted $400 million in Bitcoin to Coinbase, possibly contributing to the sell-off. The conversion of Grayscale’s fund into a BTC ETF may have also caused investors to redeem their holdings for profits. Despite this, other ETFs saw record inflows.
Key Points
1. Bitcoin fell below $69,000 per coin before recovering back above $70,000 at the time of writing.
2. Data from the Labor Department’s Bureau of Labor Statistics showing higher-than-expected producer prices in February led to a sell-off of digital assets and stocks, as traders feared the Federal Reserve might not cut interest rates in May.
3. Grayscale shifting around $400 million in Bitcoin to its custodian, Coinbase, may have contributed to the downward pressure on the price of Bitcoin.