Bitcoin
Bitcoin (BTC) Price Falls in Crypto Market
Cryptocurrency markets remained under pressure during U.S. trading on Thursday, continuing a pullback that began a day earlier when the Fed signaled it expected to cut rates just once this year.
The price of ether (ETH) led a mid-morning rally after U.S. Securities and Exchange Chairman Gary Gensler – in testimony at a Senate hearing – said he expected spot ether ETFs will receive full approvals from their agency by the end of the summer.
The news sent Ether up 1%, but it turned out to be a selling opportunity, with the price reversing more than 3% just an hour later. At press time, Ether was trading at $3,440, down 5% in the last 24 hours. The wider CoinDesk 20 Index it was lower by 4.9% in the same period.
The price of bitcoin also fell by almost 5% (BTC)which was trading near a one-week low of $66,300.
Markets began heading south on Wednesday afternoon following the Federal Reserve’s decision hawkish political meeting results. The U.S. central bank kept the federal funds benchmark rate range stable at 5.25%-5.50%, but surprised with its updated projections, suggesting an expectation of just a 25 basis point rate cut in 2024. Rate futures markets, however, had been pricing in two to three 25 basis point moves this year.
Failing to improve the macro mood in crypto was US economic data on Thursday morning, suggesting a continued slowdown in both inflation and the economy. The Producer Price Index (PPI) for May fell 0.2%, against expectations for a 0.1% increase. On an annual basis, the PPI was 2.2% higher, compared to forecasts of 2.5%. There were also initial claims for unemployment benefits, which reached a near one-year high of 242,000, versus expectations of 225,000.
“$66,000 seems like balance,” said respected analyst Skew in a postwho along with others is trying to decode a market that will not rise sustainably despite much recent bullish news: improving inflation data, a Bitcoin-friendly presidential candidate in Donald Trump, spot ETH ETF approvals and other market risk assets (namely US stocks) reaching new all-time highs.