Bitcoin suffers 6% decline to US$66,400 following U.S. March manufacturing data release

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2nd April 2024 – (New York) Bitcoin, the leading cryptocurrency, experienced a significant drop of 6% to reach the price of $66,400. This decline came shortly after the release of U.S. March manufacturing data. The news has sent ripples through the cryptocurrency market, causing concern among investors and triggering a broader market correction.

The fall in Bitcoin’s price was a direct response to the positive growth in the US manufacturing sector for the first time in 1.5 years during March. The Institute for Supply Management (ISM) reported that the manufacturing Purchasing Managers’ Index (PMI) rose to 50.3, surpassing expectations and marking the first reading above 50 since September 2022. The rebound in production and increased new orders contributed to this positive trend. However, employment in factories remained lacklustre, and input prices saw an upward push.

Bitcoin’s decline mirrored the sentiment in the broader cryptocurrency market, as Ethereum, the second-largest cryptocurrency, also experienced a sharp drop of over 6.6% to $3,365. Altcoins such as Solana, BNB, XRP, Dogecoin, Cardano, Shiba Inu, and Bitcoin Cash also witnessed declines ranging from 4.5% to 12.8%.

Analysts and experts have weighed in on the situation. Edul Patel, CEO of Mudrex, attributed Bitcoin’s fall to the belief that the Federal Reserve would be cautious in implementing rate cuts in June due to the robust US data. Shivam Thakral, CEO of BuyUcoin, highlighted the decreased trading volumes in Bitcoin spot ETFs compared to March and the upcoming Bitcoin halving as factors contributing to the market’s volatility.

The global cryptocurrency market cap experienced a 6% decline, reaching approximately $2.52 trillion within the past 24 hours. Bitcoin’s market cap fell to $1.312 trillion, and its dominance currently stands at 52.14%.

Despite the recent downturn, some experts believe that Bitcoin’s support level at $61,000, tested in the previous month, could act as a strong foundation for a potential market recovery. Vikram Subburaj, CEO of Giottus, advises investors to consider buying the dips as an opportunity to capitalize on the market movement.

As the cryptocurrency market continues to evolve rapidly, it is crucial for investors to remain vigilant and well-informed about the dynamic nature of cryptocurrencies. The recent decline in Bitcoin’s price underscores the importance of reliable and timely information to make informed investment decisions.