Bitcoin (BTC) seems to have found some footing at the $76k price level, having faced a steep correction over the last weekend. According to CoinGecko data, BTC’s price is down by 0.3% in the last 24 hours, 5.3% in the last week, and 5.2% in the 14-day charts. Despite the dip, BTC has maintained some gains in the monthly charts, rallying by 1.3%. Let’s discuss if the original cryptocurrency can see a rebound anytime soon, and what investors can expect next.
Bitcoin Price Correction: What To Expect Next?
Bitcoin’s (BTC) price dip comes after higher than anticipated inflation data. Not only that, crude oil prices have gone up and US bond yields are also increasing. The development has put a thorn in the expectations of an interest rate cut from the new Federal Reserve Chair Kevin Warsh. Investors are now worries that they may instead face an interest rate hike. Such a move could lead to another price correction for Bitcoin (BTC).
On the other hand, the highly anticipated CLARITY Act cleared the Senate Banking Committee. However, the legislation could face resistance before the final vote. Bitcoin (BTC) could be impacted by the direction of the legislation. Several groups have asked for new language before the bill is passed into law. Some Senators want ethics language for people in power to not profit from cryptocurrency ventures. On the other hand, banking groups want to prohibit stablecoin yields to protect their own businesses. Bitcoin (BTC) could suffer if the CLARITY Act fails to go through.
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Furthermore, the US-Iran conflict seems to see no end. President Trump rejected the ceasefire terms presented by Iran. If the conflict re-escalates, investors could move further away from risky assets. Bitcoin (BTC) and the larger crypto market could face another price dip under such circumstances. However, if the Middle East conflict comes to a conclusion, it could elevate investor sentiment.