The broader cryptocurrency market has come under selling pressure in the last 24 hours with Bitcoin losing nearly 4% and top ten altcoins falling anywhere between 4-10%. At press time, the Bitcoin price is trading 3.67% down and slipping under $64,500 as macro conditions show weak demand in the US economy.
US Business Activity Cools Down
On Tuesday, S&P Global reported that its preliminary U.S. Composite PMI Output Index, monitoring both manufacturing and services sectors, declined to 50.9 this month from 52.1 in March. A reading above 50 signifies expansion in the private sector.
In April, business activity in the United States eased to its lowest level in four months, attributed to diminished demand, while inflation rates saw a slight decrease despite notable rises in input costs. These developments hint at potential relief ahead, aligning with the Federal Reserve’s search for indications that economic activity is tapering enough to alleviate inflationary pressures.
Despite the Federal Reserve implementing 525 basis points of interest rate hikes since March 2022 to curb inflation, the United States remains ahead of its global counterparts. However, the Fed has recently expressed concerns over persistent inflation and robust employment figures, indicating that its efforts to bring inflation down to the target rate of 2% have encountered setbacks or reversals.
The upcoming Federal Reserve meeting is likely to maintain the policy rate within the current range of 5.25% to…
