BTC’s price extended its drop-trend as the leading digital asset maintains above its seven-day high of about $41,295.27. At the moment, Bitcoin declined by 5.21% to trade at $35,952.61 (coinmarketcap stats). This bearish outlook contradicts the existing favorable BTC blockchain conditions. Keep in mind that the world’s best digital assets started declining after achieving their highest mark, $64,000, back in April. Since the BTC started retracing, the crypto trend saw increased passive engagement from retail traders from different regions.
Glassnode stats indicate the low activity in the BTC network. According to the data, the overall charges paid on BTC transactions dipped to 1.390, attaining its lowest mark over the last year, according to the 7-d Moving Average approximation. Other similar trends indicate the lower transaction fees show inadequate blockchain congesting by traders.
Keep in mind that this trend is not without its positive and negative impacts. On the negative part, the inadequate buy-ups and inconsistent transactions that trigger Bullish outlook keep the total BTC price low. On the positive ends, users would now enjoy utilizing the platform due to the favorable fees charged when sending funds.
Investors Backing US Traditional Marketplaces Impacted BTC
For now, traditional markets in the US are flourishing after the Fed issued attractive interest rates for this market offers. With that, investors pumped over $756 billion in the reverse repurchase process.
The FOMC (Financial Open Market Committee) meeting on Wednesday saw the repurchase agreement interest rates attuned to 0.05%, from the 0% mark. Also, there was boosting of the interest rates payable to the US central bank to 0.15%. These increases initiated the documented inflows.
Keep in mind that on Friday, the US dollar rose against other currencies, appreciating 92.70 against popular fiat currencies. That might be the reason behind the unrelenting Bitcoin market sell-offs, as an escalating dollar is a persuasive benefit for the crypto market bears.
Economic protocols from market regulators have an over-bearing effect on BTC and the crypto atmosphere.
As much as bulls and most market players anticipate BTC price to surge amid the growing fundamentals, the existing Bitcoin performance contradicts the favorable network condition at the moment.