Cryptocurrencies, especially Bitcoin, continue the new week with declines. The number one cryptocurrency retreated to $64,782 yesterday. The price was over $71,000 in Monday. Why did Bitcoin fall?

The main reason for the decline in Bitcoin is related to Fed expectations. On Monday, the US ISM manufacturing index exceeded forecasts and was 50.3 in March, up 2.5 points from the previous month. Thus, the manufacturing index grew for the first time in 1.5 years.

ISM data increased expectations that the US central bank may avoid an interest rate cut in June. The yield on 10-year US Treasury bonds also rose to 4.4%, reaching its highest level since November 2023.

Expectations about the Fed’s monetary policy this year have changed in the market. The probability of a rate cut in June fell below 50%.

The resulting picture caused an outflow from risky assets.

On the other hand, investments in spot Bitcoin ETFs also decreased. Yesterday ETFs gave a deficit of $85 million. Last week’s improvement in ETF investments was replaced by outflows. The $300 million sale seen in the Grayscale ETF also put pressure on the Bitcoin price.

Markets are now focused on Fed chairman Powell’s statements today and PMI data to be reported for the non-manufacturing sector.

Bitcoin is trading at $66,400 at the time of writing.