Bitcoin
fell to $62,000 amid dollar pressure and inflation jitters By Investing.com
Investing.com– The price of Bitcoin fell on Monday, extending a deep decline from last week, as concerns over U.S. interest rates and anticipation of key inflation data kept traders largely tilted towards the to the dollar.
Broader cryptocurrency prices were also pressured by a strong dollar, with the dollar coming close to a two-month high following robust data from the US Purchasing Managers Index.
fell 2.4% in the last 24 hours to $62,850.7 at 00:59 ET (04:59 GMT).
Bitcoin Pressured by Strong Dollar, PCE Inflation Awaited
The world’s largest cryptocurrency suffered steep losses last week as traders grew skeptical about the timing of interest rate cuts by the Federal Reserve.
This sentiment is likely to see little sign of improvement this week, especially ahead of key data due out this Friday.
The reading is the Fed’s preferred inflation gauge and will likely influence the central bank’s outlook on interest rates in the coming months. While Friday’s data is expected to show some slight cooling in inflation, the reading is expected to remain well above the Fed’s 2% annual target – giving the central bank more room to keep rates high.
High rates bode poorly for cryptocurrencies as they diminish the appeal of speculative and risk-oriented assets like cryptocurrencies.
Crypto price today: altcoins sink more than Bitcoin
Major altcoins have seen much deeper losses than Bitcoin as a series of token unlocks, dwindling institutional demand and a healthy dose of profit-taking have pressured cryptocurrency prices.
Recent capital flow data has shown that institutional demand, especially for cryptocurrency investment products, has remained largely centered on Bitcoin. But even Bitcoin was seen recording large outflows in early June.
The world’s No. 2 token fell 4.2% to $3,366.81, hitting a one-month low as it largely consolidated gains made on hype about a spot Ether exchange-traded fund.
sank 3.3%, while and fell 4.3% and 7.4%, respectively. Both tokens have seen some gains in recent sessions.
Among meme tokens, they fell 4.7% and 5.8%, respectively.