Bitcoin
fell to $61,000 amid regulatory tensions and inflationary distress By Investing.com
Investing.com – The price of Bitcoin fell on Tuesday, extending recent declines, as a combination of regulatory fears, especially over U.S. action and German government sales, along with broader risk aversion, kept cryptocurrency prices under pressure.
The coin fell 2.4% in the last 24 hours to $61,332.0 at 01:22 ET (05:22 GMT). It fell to $59,215 in after-hours trading.
The cryptocurrency sell-off was driven by a storm of different regulatory factors, which, coupled with angst over US interest rates, sent broader prices tumbling. Crypto investment products have also recorded two consecutive weeks of strong capital outflows.
Bitcoin price pressured by German sell-off fears and inflationary distress
Bitcoin suffered steep losses last week amid reports that the German government was selling Bitcoin confiscated from a piracy website. Reports say that German police sold about 3,000 tokens out of the 50,000 initially confiscated.
Reports of the German sell-off were accompanied by other reports that the US Commodity Futures Trading Commission was investigating market maker Jump Trading over its crypto trading activities. Jump president Kanav Kariya also said he was leaving the company.
The reports contributed to broader risk-on sentiment in crypto markets as traders turned to the dollar ahead of key US inflation data due this Friday. The data, which is the Federal Reserve’s preferred inflation gauge, is expected to offer more clues about interest rates this week.
Rising fears of high rates have weighed on crypto markets over the past week and have shown little sign of clearing. The strength in crypto’s appeal has also waned.
Crypto Investment Products Record Sustained Outflows
Data from digital asset manager CoinShares showed on Monday that crypto investment products saw outflows totaling about $584 million, with most of it going into U.S. Bitcoin exchange-traded funds.
Bitcoin products saw outflows of $630 million, while altcoin products saw moderate inflows, as investors saw recent price drops as a buying opportunity.
Crypto Price Today: Altcoins Rise, But Nurses Lose
Broader cryptocurrency prices rose on Tuesday as major altcoins recovered from steep losses seen last week.
The world’s No. 2 token rose 0.2% to $3,377.80 after giving up much of its gains made on hype about a spot Ether ETF.
and rose between 0.3% and 10%, with leading gains among its peers, albeit on small trading volumes.
Among the meme tokens, and added about 2% each.