The decline in Bitcoin prices was attributed to reduced demand for specialized US exchange-traded funds and diminishing expectations surrounding the Federal Reserve's monetary policy.

Following a 5.3% drop, Bitcoin experienced a partial recovery, with the price stabilizing at $66,735. Similarly, tokens popular within the meme community, such as Pepe and dogwifhat, also witnessed a decrease in value.

In 2024, there's been a downturn largely attributed to ongoing US economic conditions, prompting investors to scale back bets on potential Federal Reserve interest rate cuts. This has led to a rise in Treasury yields and the dollar.

According to Stefan von Haenisch, Head of Trading at OSL SG Pte, this new perspective on the Fed seems to be impacting not only the cryptocurrency industry but also other markets, particularly in the meme sector, which saw prices surpassing Bitcoin's six months ago.

Bitcoin has experienced a roughly 10% drop after reaching $73,798. The increase in daily inflows into spot Bitcoin ETFs has begun to slow down, affecting the largest digital asset.

Richard Galvin, Co-Founder of DACM, noted a recent weakening in the cryptocurrency market due to the latest economic data. The data revealed a resurgence in the US manufacturing industry since September 2022, accompanied by rising input costs. Following this report, the anticipated level of Federal Reserve easing reflected in swap contracts dropped by 65 points.

There is speculation that the supply of new Bitcoin tokens will be halved this month. This event occurs every four years and is viewed by some traders as a catalyst for the cryptocurrency market. However, others do not anticipate a significant surge in the token's value in the near future.