04.08.2025 00:56

Bitcoin experienced a significant 4% price drop, triggered by a confluence of factors. Jerome Powell, Chair of the Federal Reserve, expressed hesitancy regarding September interest rate cuts, despite a pause in July. This uncertainty, coupled with weaker-than-anticipated US nonfarm payroll data suggesting a potential economic slowdown, significantly impacted investor sentiment within the cryptocurrency market.

The weakening economic indicators had a ripple effect beyond Bitcoin. Positive spot ETF inflows reversed course, contributing to a broader decline in cryptocurrency prices, including Ethereum. Despite evidence of strong corporate accumulation in the crypto space, the overall market sentiment remained subdued. The trajectory of US equities now holds considerable weight; a further downturn could necessitate a shift in Federal Reserve policy, directly influencing future cryptocurrency price movements.

This recent volatility underscores the interconnectedness of the cryptocurrency market with broader macroeconomic trends. Investors are keenly observing the performance of the US stock market, as its direction will likely dictate the next moves in the crypto space. Powell's cautious stance on rate cuts, highlighting persistent inflation risks and a robust labor market, fuelled uncertainty and contributed to Bitcoin's recent decline. The situation highlights the susceptibility of the crypto market to shifts in global economic forecasts and central bank decisions. The immediate future of Bitcoin and other cryptocurrencies hinges on the resolution of these macro uncertainties.