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Bitcoin’s price stabilized on Thursday after experiencing sharp declines earlier in the week. The world’s largest cryptocurrency remained in a narrow trading range as investors awaited critical economic data that could influence the Federal Reserve’s next interest rate decision.
Bitcoin Holds Steady After Recent Declines
After falling sharply on Tuesday and Wednesday, Bitcoin steadied at $59,339.3 by 01:19 ET (05:19 GMT), recovering slightly from a low of $58,000 earlier in the week. The recent price drop was triggered by the movement of nearly $2 billion worth of tokens between wallets belonging to a major crypto exchange, raising concerns of a potential large-scale sale.
In addition to this, a decline in Nvidia Corporation’s (NASDAQ: NVDA) shares dampened risk appetite across markets, further contributing to the sluggish performance of cryptocurrencies.
Focus Shifts to U.S. Economic Data for Rate Cues
Traders are now closely watching upcoming U.S. economic readings, including a revised second-quarter GDP report due later on Thursday and the Personal Consumption Expenditures (PCE) price index on Friday. These reports are expected to provide more clarity on the Federal Reserve’s stance on interest rates.
Markets are currently split on whether the Fed will cut rates by 25 or 50 basis points in September. Weaker-than-expected economic data could increase the likelihood of a more significant rate reduction, which typically benefits speculative assets like cryptocurrencies.
However, the potential impact of lower interest rates on the crypto market remains uncertain. A recent report from blockchain research firm Glass Node highlighted a decline in speculative interest, particularly among retail investors. Additionally, institutional enthusiasm for cryptocurrencies has waned, as the initial excitement over the launch of spot Bitcoin exchange-traded funds (ETFs) earlier this year has diminished.
Altcoins Struggle to Recover from Earlier Losses
In broader crypto markets, major altcoins posted some gains but remained within their recent trading ranges. Ethereum (ETH) rose 3% to $2,537.46, while XRP and Cardano (ADA) each added about 0.5%.
However, Solana (SOL) continued to lag, declining by 2.4%, and Polygon (MATIC) extended its steep losses with a 4.6% drop. Among meme tokens, Dogecoin (DOGE) managed a modest 1.5% gain.
As traders await further economic data, the crypto market remains in a state of cautious anticipation, with the potential for significant movement depending on the upcoming reports.
