Bitcoin's drop below $60K tied to rising inflation, not Strategy, 10xResearch says
10xResearch argues Bitcoin's drop below $60,000 is driven by rising inflation and institutional ETF selling, not by Strategy's recent BTC sale.
Bitcoin's recent slide below $60,000 is more closely tied to rising inflation and institutional selling through spot Bitcoin ETFs than to Strategy's first BTC sale since 2022, according to 10xResearch.
In a Monday report, 10xResearch founder Markus Thielen argued that investors have misread the primary drivers of the crypto selloff. While much attention focused on Strategy (MSTR) selling a portion of its Bitcoin holdings for the first time in years, the bigger factor has been a wave of institutional outflows from spot Bitcoin ETFs. Thielen noted that the selloff accelerated after the April U.S. inflation report came in higher than expected on May 12, which dampened risk appetite across markets.
For cryptocurrency traders, the inflation narrative is critical because it influences Federal Reserve policy expectations. Higher inflation reduces the likelihood of rate cuts, which tends to strengthen the U.S. dollar and weigh on risk assets like Bitcoin. Live crypto prices and charts on NowPrice show how the market is reacting to these macro shifts in real time. The 10xResearch analysis suggests that the market's focus on Strategy's actions may be a distraction from the broader macroeconomic headwinds.
Looking ahead, traders should monitor upcoming U.S. inflation data and Fed commentary for further clues on rate trajectory. If inflation remains sticky, Bitcoin could face continued pressure. Conversely, any signs of easing price pressures might reignite bullish momentum. The key levels to watch are Bitcoin's ability to hold above $58,000 support and reclaim the $62,000 resistance zone.