Bitcoin (BTC) experienced a significant 10% price drop over 10 days, falling from $64,190 to $57,800 on Sept. 3, 2024. This decline came amid broader market stability, with the S&P 500 index just 2% below its all-time high and gold trading near its historical peak. The drop in Bitcoin's price has prompted discussions about the underlying causes, with a portion of the decline attributed to concerns about the broader macroeconomic environment, particularly in the United States.

According to trader DamiDefi, the "bullish narrative" for Bitcoin in the near future will depend on the expectation of a "looser Federal Reserve policy," such as lowering interest rates. This belief is based on the notion that the US may need to implement expansionary measures to stimulate the economy, which could include reducing interest rates. Such actions could provide a boost to Bitcoin, as lower interest rates often lead to a weaker dollar, making alternative assets like Bitcoin more attractive.

In addition to the stock market and gold, investors have also been accumulating US government debt, with the yield on the 2-year Treasury falling to 3.88% on Sept. 3, down from 4.06% two weeks earlier. This decline in yields indicates that investors are accepting lower returns in exchange for the safety of government bonds, partially driven by uncertainty in the job market.

Source: https://coinpaper.com/5291/bitcoin-price-drops-10-as-macro-concerns-and-miner-struggles-persist

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