Bitcoin’s bull run screeches to a halt; drops 7 per cent in a day to trade at $67,830

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CoinDesk data shows. The price of bitcoin even dropped to as low as $67,000 before recovering in the later part of the day. Some cryptocurrency experts believe that this was expected on account of profit booking that usually follows a bull run, while there is another view that argues that the crypto price drop may be linked to the release of Producer Price Index (PPI) by US Federal Reserve.

“The recent strong CPI data has cooled the expectation of a Fed rate cut, and gold prices have also tumbled. The recent surge in bitcoin prices has been too fast for the market to price correctly, so a current correction is expected," Greta Yuan, Head of Research at VDX, said in a note. Shivam Thakral, CEO of BuyUcoin, an Indian crypto exchange, said “Bitcoin has experienced a flash dump as low as $67,000 as the cryptocurrency saw over a 7% decrease in the last 24 hours.

Ethereum also saw similar price action by trading down around $3600. This price action could be linked to the announcement of the Producer Price Index (PPI) by the Fed, which was higher by 0.6% last month. The Fed is signalling that no interest rate cut could be expected at the May meeting." Another expert Adrian Wang, Founder and CEO of Metalpha, commented that the crypto market could be recalibrating to uncertainties in run up to the next month’s mining reward halving.

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures calls this a healthy correction in the rally. "Bitcoin prices have surged over 40% in the last month alone and the current drop in prices is a healthy correction. But the reason for the fall can be attributed to macro factors, as crypto as an asset doesn't exist in isolation.