Bitcoin, Ethereum Continue to Slide Amid Renewed Inflation Fears

Traders gear up for a week filled with corporate earnings, key job reports, and a Fed meeting.

By: Mehab Qureshi Loading...

downward-trending arrows and diminishing bar graphs

Crypto markets continue to drift lower on renewed US inflation fears after last week’s GDP data showed the US economy grew last quarter at the slowest pace in two years.

Bitcoin (BTC), the world’s largest cryptocurrency, is trading near $63,000, down 2.5% over the last 24 hours, according to CoinGecko. Ether (ETH) is also down by 3%, trading at $3,150. The global crypto market cap stands at $2.31 trillion.

BTC Price chart
BTC Price

Michael Van de Poppe, CEO and founder of MN Trading, told The Defiant that the crypto markets still show signs of boredom.

“There's a glimmer of hope with ETH bouncing upwards, but it needs to maintain this momentum and continue rallying. I remain optimistic, expecting it to outperform BTC,” he said.

ETH fees drop to a 6-month low

Meanwhile, gas fees on the Ethereum network have plummeted to a six-month low. According to social analytics firm Santiment, the average fee for an Ethereum transaction dropped to $1.12 on April 27.

"Traders historically oscillate between sentimental cycles of believing that crypto is going 'To the Moon' or that 'It Is Dead', which is reflected in transaction fees, " the firm tweeted.

US economic growth falls short of expectations

Last week's U.S. GDP report revealed that the economy grew 1.6% in the first quarter, well below the forecasted 2.4% and the 3.4% growth seen in the last quarter of 2023.

On Monday morning, S&P 500 futures inched higher by 0.3%. The Dow Jones Industrial Average futures gained 0.2%, while Nasdaq 100 futures rallied 0.4%.

Traders anticipate a week packed with corporate earnings, crucial labor data, and a highly anticipated Federal Reserve meeting. Later in the week, all eyes will be on monetary policy as the Fed will release its latest interest rate decision on Wednesday.

Veteran trader says the bull market may be over

Peter Brandt, a veteran trader, believes there is a possibility that Bitcoin may have already topped this cycle based on an "exponential decay" pattern.

Brandt’s current view sharply differs from his earlier forecast in February, where he suggested that the bull market might continue until September 2025, potentially driving prices up to $200,000.