Bitcoin
fell to $67K as Fed rate decision and CPI in focus By Investing.com
Investing.com– The price of Bitcoin fell on Wednesday, extending the decline from the previous session, as risk appetite was largely limited by the anticipation of a Federal Reserve meeting and key inflation data.
The coin fell 0.8% in the last 24 hours to $67,372.3 at 01:34 ET (05:34 GMT). It fell to $66,000 on Tuesday.
Bitcoin volatile as rate jitters hurt sentiment
Bitcoin has seen big swings in recent sessions, also rising as high as $72,000, as sentiment towards cryptocurrencies remained tense ahead of more definitive signals on US interest rates.
High fees diminish the appeal of risk-oriented assets like crypto. They also present a more difficult outlook for the sector, by keeping liquidity levels low.
This caused traders to move away from Bitcoin and other cryptocurrencies this week and into assets more protected against rate jitters, such as the dollar.
Although data showed that Bitcoin and other crypto investment products saw inflows of $2 billion in the first week of June, this was not reflected in the price.
The Fed is widely expected to do so at the conclusion of a two-day meeting later on Wednesday. But the central bank could potentially present a more aggressive outlook, especially in the face of sticky inflation and a resilient labor market.
Ahead of the Fed’s decision, key data will be released on Wednesday and is also expected to show that inflation remained stable in May.
Recent jitters about the job market and inflation have caused traders to scale back bets on a rate cut in September, which has boosted and weighed on cryptocurrency prices.
Crypto Price Today: Altcoins Fall Amid Rate Jitters
In addition to Bitcoin, major altcoins also retreated on Wednesday amid lingering jitters over US interest rates.
The world’s No. 2 token fell more than 1% to $3,511.91, further paring gains made through May on hype about a spot Ether exchange-traded fund.
, and fell between 1.2% and 2.5%. Among meme tokens and fell 1.5% and 2.4% respectively.
Sentiment towards meme tokens also appeared to be cooling along with meme stocks. GameStop Corp (NYSE:) erased most of its gains made in late May after a major influencer resumed posting on social media after a long break.