Bitcoin and Ethereum witnessed significant declines in Tuesday’s trading session, with Bitcoin dropping 5.8% to $66,398 and Ethereum falling over 6.6% to $3,365. This downward trend was influenced by robust growth in the US manufacturing sector for March, which surpassed expectations.
According to the Institute for Supply Management (ISM), US manufacturing expanded for the first time in 1-1/2 years, with the Manufacturing PMI reaching 50.3, the highest reading since September 2022. While this indicates a positive economic outlook, it also suggests a delay in potential rate cuts by the Federal Reserve.
Edul Patel, CEO of Mudrex, noted that Bitcoin’s decline to $66,000 was driven by the perception that the Federal Reserve would be hesitant to cut rates in June, supported by strong US data. Similarly, Shivam Thakral, CEO of BuyUcoin, highlighted Bitcoin’s reaction to the unexpected rise in US manufacturing sector data.
The broader cryptocurrency market also experienced declines, with altcoins like Solana, BNB, XRP, Dogecoin, Cardano, Shiba Inu, and Bitcoin Cash all posting losses. The global cryptocurrency market cap fell by 6% to approximately $2.52 trillion in the past 24 hours.
Bitcoin’s market cap dropped to $1.312 trillion, with its dominance currently at 52.14%. However, BTC volume surged by 101.5% to $42 billion in the last 24 hours. Despite the downturn, Vikram Subburaj, CEO of Giottus, suggested that Bitcoin’s recent support at $61,000 could serve as a strong base for potential market recovery, advising investors to consider buying opportunities during dips.
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