Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin experienced a slight decline on Thursday, remaining within its established trading range as investors awaited crucial U.S. economic data that could influence the outlook for interest rates.
While easing concerns about a potential sell-off by defunct exchange Mt Gox provided some relief, the strengthening dollar, driven by anticipation of upcoming economic data, exerted downward pressure on the cryptocurrency.
Bitcoin fell 1.1% to $68,083.9 by 01:30 ET (05:30 GMT), staying within the $60,000 to $70,000 range observed since mid-March.
Hawkish comments from Federal Reserve officials in recent weeks have dampened expectations for rate cuts, raising concerns about the impact on risk-driven assets like cryptocurrencies.
Market participants are closely watching revised first-quarter U.S. gross domestic product data, due later on Thursday, as any signs of economic resilience could embolden the Fed to maintain higher interest rates for an extended period.
The most significant data point will be the PCE price index, the Fed’s preferred inflation gauge, scheduled for release on Friday. Traders have been steadily reducing expectations for rate cuts in September, bolstering the dollar and weighing on crypto and other speculative assets.
Despite these concerns, recent data revealed continued inflows into crypto investment products for the third consecutive week. Ether, in particular, experienced increased inflows due to optimism surrounding the U.S. approval of an exchange-traded fund that directly tracks the world’s second-largest cryptocurrency.
However, Ether also declined by 2.3% to $3,780.62 on Thursday, retreating from recent highs as excitement over the immediate approval of a spot Ether ETF subsided. While the Securities and Exchange Commission has approved applications from major exchanges to list potential spot ETF products, further regulatory engagement with potential issuers is required, indicating that a listing is still a distant prospect.
Other altcoins also faced downward pressure amid jitters over interest rates. Solana (SOL) and XRP fell 0.7% and 2.3%, respectively, while meme tokens like Shiba Inu (SHIB) and Dogecoin (DOGE) experienced losses exceeding 3%.
In summary, Bitcoin’s price dip reflects the prevailing uncertainty surrounding the Federal Reserve’s interest rate decisions, while Ether’s decline signifies a cooling off of the initial ETF-related enthusiasm. The broader cryptocurrency market remains sensitive to interest rate expectations and macroeconomic developments.
