Despite many good things happening for cryptocurrency investors, Bitcoin’s price continues to fall. It started to go down after reaching above $70,600. What caused this drop? Will Bitcoin's price go up again?

Why is Bitcoin Dropping?

Right now, the Services PMI data showed results about 10% higher than expected. This indicates the service sector is strong, which is important for inflation. If demand in this sector grows too fast and rises above 50, it means the Federal Reserve will need to fight inflation for longer. Additionally, Gary Gensler recently repeated his past comments, stating that most cryptocurrencies are considered securities. His remarks were not positive, especially on the day when the approval of an Ethereum ETF was anticipated.

To sum up, Bitcoin’s price drop followed the release of very high PMI data, increasing the risks of persistent inflation and the possibility that the Federal Reserve might tighten monetary policy further or keep it strict for a long time. At the moment, Bitcoin has dropped to $67,800.

Conclusion

Although there have been many positive developments for cryptocurrency investors, Bitcoin's price continues to decline due to high PMI data and concerns over inflation. It remains uncertain if and when Bitcoin will recover.