On Wednesday, the price of bitcoin fell as traders decided to lock in gains after a recent upswing driven by optimism about the Spot Exchange-Traded Fund Ether, in anticipation of new U.S. interest rate announcements. Writes UNN with reference to Investing.com.
Details
The price of bitcoin fell on Wednesday as traders reacted to expectations of new U.S. interest rate data, recording gains after a rise driven by optimism about the Spot Exchange-Traded Fund Ether.
Bitcoin has fallen 2.1% in the last 24 hours to 6 69,763. Ether has also fallen 3% in the past 24 hours to 3 3,663, moving away from a two-month high reached in early March. On Monday, the price of the token rose by 18% due to news that the SEC offered exchanges to make adjustments to their applications for spot ETFs Ether before an important decision of the regulator, which is expected this week.
While there is a risk of SEC rejection, the applications reflect progress in approving spot ETFs. Analysts point out that this may increase the likelihood of a positive decision, and the approval of ETFs, similar to previously approved spot Bitcoin ETFs, could provoke a significant increase in cryptocurrency prices.
Bitcoin continues to fluctuate, failing to maintain stable growth. On Tuesday, its price briefly reached 7 71,000, but then fell again to the usual range of 6 60,000 -7 70,000, which has been going on for two months. Despite positive expectations for the spot Ether ETF, overall sentiment in the cryptocurrency market remains subdued due to ongoing concerns about US interest rates.
Several Federal Reserve (FRS) officials said this week that the bank needs more confidence in reducing inflation before it can start cutting interest rates. Now all expectations are turned to the minutes of Fed meetings at the end of April for additional hints about possible rate cuts. High and prolonged interest rates can negatively affect the cryptocurrency market, as they reduce the attractiveness of high-risk investments.
Today, altcoin prices declined, partly due to the retreat of bitcoin, as well as due to the preference of traders in favor of Ether among other altcoins. The strengthening of the dollar also prevented significant growth of the cryptocurrency. Among the major declines, Solana lost 1.6% and XRP lost 2.3%. Meme coins like Dogecoin and SHIB fell 2.8%.
On the other hand, BlackRock's spot Bitcoin ETF, known as IBIT, showed significant investment inflows, the largest since April. On Tuesday, it raised more than.290 million in investment, the largest one-day inflow this month and just under three times the previous monthly high of травня 93 million recorded on May 16. As a result, IBIT's total assets have grown to more than.19 billion.
On Tuesday, there was a significant influx of investment in IBIT, which contrasts with the beginning of the month, when inflows were minimal or nonexistent from May 1 to May 15. In April, IBIT also recorded its first ever day of investment outflow, which caused pessimism about bitcoin at the time.
Recall
The Ministry of internal affairs warned about a new cyber fraud scheme, where scammers send out messages that "your financial account has been replenished" with embedded links to fraudulent resources to steal citizens ' data and funds.
Біткоїн та ефір втрачають, свої позиції через страхи інвесторів в США29.04.24, 11:46