Why is Bitcoin dumping?
1) In the historical Bitcoin market cycle, BTC always corrects after the halving.
So we are now seeing correcting and price consolidation after a massive
pump from $15k to $73k.
2) GDP came lower than expected. Just an hour ago, US GDP projections reached 1.6% while the expectations were 2.5%.
Low GDP data ignites fear of recession which dumped the S&P 500, NASDAQ, and crypto.
3) Biden tax proposal Yesterday, Biden proposed the highest capital gains tax in history at 44.6%.
His proposal also includes a 25% tax on unrealized gains for high-net-worth individuals.
In the past, whenever there was such a proposal the market dumped and a similar thing is happening now
4) Israel situation Yesterday, Israel struck 40 Hezbollah sites in South Lebanon
As usual, Bitcoin started pricing in a war again which resulted in an immediate dump
What's next for the market?
Low GDP numbers are actually bullish for the market as it will push the FED to do rate cuts
After the recent inflation data, it was expected that the rate cuts could be delayed but with the GDP numbers, the probability of rate cuts will increase again
IMO, BTC support at $60K is still powerful with a lot of buy orders.
If there's a black swan event, BTC could go lower a bit more which will be a golden buying opportunity.