Bitcoin
pegged below $62K with CPI data available By Investing.com
Investing.com– The price of Bitcoin fell slightly on Wednesday, seeing little positive movement even as the dollar weakened, although traders remained largely risk-averse ahead of key U.S. consumer inflation data.
The value fell 0.9% in the last 24 hours to $61,974.9 at 01:28 ET (05:28 GMT).
Bitcoin saw little relief even as it fell on Tuesday after Federal Reserve Chairman Jerome Powell said current monetary policy was tight enough, indicating that interest rates will not rise further.
But Powell warned that the central bank had little confidence that inflation was returning to its 2% annual target.
This came after data read warmer than expected for April, potentially setting the stage for a strong reading later on Wednesday.
Signs of decreasing capital flows into Bitcoin and cryptocurrency investment products, coupled with the threat of further regulatory action, have also kept sentiment towards crypto markets muted.
Hong Kong Crypto ETFs See Abundant Outflows
Three Bitcoin and Ethereum exchange-traded funds in Hong Kong recorded outsized outflows of nearly $40 million on Monday, wiping out two weeks of inflows since their April 30 debut.
While the immediate reason for the exits was unclear, they also came at a time when sentiment toward Hong Kong and Chinese markets had soured due to rising U.S. trade tariffs on Beijing and mixed economic signals from China.
The Hong Kong ETF outflows came amid dwindling capital inflows to their US counterparts as enthusiasm over approving spot Bitcoin ETFs for US markets faded.
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While initial excitement over its approval drove Bitcoin to record highs of more than $73,000 in early March, the world’s largest cryptocurrency has traded largely within a trading range of $60,000 to $70,000 in recent months. last two months, amid few positive signs.
The Bitcoin halving event occurred with little price action, while threats of further regulatory action by the US Securities and Exchange Commission also kept traders averse to the cryptocurrency markets.
Crypto Price Today: Altcoins See Prolonged Losses Ahead of CPI Data
Broader cryptocurrency prices also retreated as traders became more risk averse ahead of the US CPI data.
The world’s number 2 token fell more than 1% while losing 3% and 1.2% respectively.
Gains in meme stocks – like GME and AMC – also inspired fleeting gains in meme tokens. fell more than 3%, while losing almost 3%.
Sticky US inflation will likely keep interest rates high for longer – a scenario that bodes ill for cryptocurrency markets, which generally thrive in low-rate, high-liquidity environments.