The price of bitcoin was little changed on Thursday after a volatile session as the Federal Reserve's forecast of higher interest rates largely overshadowed some signs of cooling short-term inflation. Written by UNN with reference to Investing.
Details
Over the past 24 hours, the world's largest cryptocurrency has risen by 0.4%, reaching $67,484.6. During this week, the cryptocurrency experienced sharp fluctuations, rising to $70,000, but then fell. Bitcoin remains in a tight price range amid news that the US Federal Reserve (Fed) is forecasting only one rate cut this year, while three were previously expected. Traders in general continue to avoid bitcoin and other cryptocurrencies due to high and prolonged interest rates in the US.
Although the Fed left rates unchanged, as expected, on Wednesday, Fed Chairman Jerome Powell indicated that the central bank is now considering only one rate cut during the year. Several policymakers have spoken out against rate cuts this year, arguing that more progress needs to be made in reducing inflation, so the Fed also increased its inflation forecast for this year.
After the publication of data showing that US consumer inflation fell more than expected in May, bitcoin initially rose, but then lost ground after the Fed's comments. High interest rates typically have a negative impact on speculative assets such as cryptocurrencies, as they limit the liquidity available for investment.
Attention is now focused on the upcoming Producer Price Index data, which may provide additional information on inflation in the US, with the scheduled release of data on Thursday.
Today's cryptocurrency prices: other altcoins show a decline amid volatility. The prospect of high and prolonged interest rates in the United States is also weighing on the broader cryptocurrency market. Ether, the world's second-largest cryptocurrency, lost 0.3% to $3,499.09, giving up the additional gains made last month. ADA, XRP, and SOL gained between 0.6% and 1.7%, but showed a general decline over the week.
Among the meme tokens, SHIB fell by 1.6%, while DOGE rose by 3%. Interest in meme stocks on Wall Street has also waned, which has cooled sentiment for such tokens.GameStop Corp (NYSE:GME) lost ground on Wednesday, wiping out most of its rally seen in late May.
Recall
Bitcoin failed to reach the level above $70,000 again. Analyzing the latest liquidation data, ETF activity, and market reports.