Today, the price of bitcoin is fixed at $64 thousand: what factors are holding back growth
Kyiv • UNN
The price of bitcoin remained stable at around $64,000 due to depressed sentiment in the cryptocurrency market, which is linked to expectations of higher interest rates in the US.
The price of bitcoin remained stable today, due to depressed sentiment in the cryptocurrency market related to expectations for the growth and duration of interest rates in the United States.
Writes UNN with a link to Investing.
Details
Bitcoin has experienced a slight increase of 0.2% over the past 24 hours, reaching a value of $64,339.7 as of 01:38 Eastern Time (05:38 GMT). The world leader among cryptocurrencies has shown restrained weekly results, staying within the trading range of $60,000 to $70,000 for the past six weeks.
This week, concerns about regulatory pressure on cryptocurrencies have been reignited following news that Binance founder Changpeng Zhao is facing a three-year prison sentence in the United States for pleading guilty to violating anti-money laundering laws.The outlook for bitcoin is not looking optimistic as hopes for a rate cut diminish. The cryptocurrency, along with the rest of the crypto market, did not benefit from a weak dollar overnight after US GDP data came in worse than forecast. However, the stronger GDP price index reading prompted traders to further lower their expectations for the Fed to cut interest rates.
The prospect of rising interest rates in the US has prompted traders to abandon bitcoin and other cryptocurrencies, as higher rates reduce the attractiveness of volatile and speculative assets. Bitcoin typically thrives in an environment with low interest rates and abundant liquidity. However, despite the positive signals from US tech stocks, including strong earnings from Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc (NASDAQ: GOOGL), bitcoin has ignored them. In recent weeks, it has been noted that the correlation between bitcoin and tech stocks has become noticeable again, mostly in a negative way.
Today's cryptocurrency price shows little altcoin activity ahead of the PCE price index data release. This index, which is used by the Federal Reserve as a key indicator of inflation, could provide new guidance on future interest rates.
The broader cryptocurrency markets proved mixed, focusing attention on the upcoming inflation data from the US. Ethereum, the world's second largest token, was down 0.3%, while XRP and Solana fluctuated in a narrow range. The PCE price index data for March, which will be released later on Friday, is expected to influence the Fed's interest rate policy.
Recall
Bitcoin and altcoin prices plummeted due to low risk appetite amid a sell-off in tech stocks and expectations of higher interest rates in the US.
