Bitcoin has experienced a dip to the lower end of its trading range, hovering around $67,300 as of Friday morning. This decline comes after a period of relatively stable trading around the $68,000 mark, following the U.S. Memorial Day holiday. The broader cryptocurrency market has also seen a slight downturn.
Key Takeaways
- Bitcoin’s price dropped to $67,300, down 1% over the past 24 hours.
- The cryptocurrency market has been relatively stable but saw a decline in recent trading hours.
- U.S. economic data and macro conditions could be the next catalyst for Bitcoin’s price movement.
Bitcoin’s Recent Performance
Bitcoin has traded in a tight range between $67,000 and $69,000 in the days following the U.S. Memorial Day holiday. As of 11:45 am ET on Friday, Bitcoin was trading at $67,300, marking a 1% decline over the past 24 hours and a more than 2% drop from two hours earlier when it briefly rose above $69,000. The broader CoinDesk 20 index was also down by 1.1% over the last day.
Despite the recent dip, May has been a strong month for Bitcoin. The cryptocurrency is up 11% since the beginning of the month when it was trading around $60,000. However, this performance has underperformed the CoinDesk 20 index, which saw a roughly 20% advance, largely driven by a 31% gain in the price of Ether (ETH) due to a surprising regulatory turnaround for a spot ETF for that asset.
Macro Conditions and Market Struggles
This week’s muted action in Bitcoin coincides with struggles in other risk assets, including U.S. stocks. The Nasdaq is down about 2% this week, while the S&P 500 has declined by roughly 1.5%. U.S. economic data continues to show signs of stagflation, with the April Core PCE Price Index up 2.8% year-over-year, matching expectations and the previous month’s pace. The May Chicago PMI fell to 35.4, well below expectations and the April reading of 37.9. This weak performance has only been matched during the 2008/2009 global financial crisis and the March/April 2020 COVID lockdowns.
The bond market reacted to this economic data with a rally, as the 10-year U.S. Treasury yield dropped by 5.5 basis points to 4.50%.
Looking Ahead: June Data as a Potential Catalyst
June begins on Saturday, and the upcoming week is expected to bring more clarity to the U.S. economic picture. Key reports to watch include Monday’s national PMI report and Friday’s national employment report. Confirmation of softening economic conditions could improve prospects for lower interest rates, potentially serving as a catalyst for Bitcoin to attempt breaching its all-time high of $73,000 set in March. Conversely, strong economic data could lead to a retest of the May lows.
