On Monday, the price of bitcoin fell, which again activated key support levels. This happened amid a slight improvement in sentiment in the field of cryptocurrencies before the publication of inflation data in the United States, which may affect interest rates. Writes UNN with reference to Investing.com.
Details
Over the past 24 hours, bitcoin has dropped by 0.4% to reach $60,910.5. The world's largest cryptocurrency has approached the critical support level of $60,000, which may indicate the potential for further price declines.
The token has seen a drop of more than 3% over the past week due to growing fears of US regulatory action against the crypto market, which has dampened investor sentiment. This situation was further complicated by the visible outflow of capital from crypto investments, especially from exchange-traded funds that work with bitcoin.
The dollar strengthened on Monday, pushing prices for bitcoin and other cryptocurrencies lower, especially in the context of expectations for new US inflation data.
Долар домінує у світовій торгівлі та резервах - МВФ08.05.24, 12:00
The producer price index will be published on Tuesday, and the closely watched consumer price index will be released on Wednesday. If these data show persistent inflation, it could dampen hopes for interest rate cuts by the Federal Reserve, which in turn would negatively impact cryptocurrency markets. Cryptocurrencies typically do better when rates are low and liquidity is high, so the prospect of higher and longer rates in the US is not conducive to their growth.
Cryptocurrencies received some support after comments from Donald Trump, the presidential candidate, who defended the industry and criticized the Biden administration for trying to negatively impact the industry. Trump also announced that his campaign will accept donations in cryptocurrencies.
Cryptocurrency prices declined today, continuing to fall amid a slight improvement in the markets. Ethereum, the second largest cryptocurrency, is down 1.5% at $2,884.43. XRP and Solana fell by 5.8% and 3.2%, respectively. Memecoins such as Dogecoin also experienced a decline, with Dogecoin falling by 5.1%.
Recall
The price of bitcoin has fallen by 1.65% over the past 24 hours to $61,215 amid concerns about high interest rates, increased regulation, and outflows from cryptocurrency investment products.
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