Investing.com– Bitcoin’s price fell on Wednesday, posting a modest positive move even as the dollar weakened, although investors remained highly risk averse as they awaited key U.S. consumer inflation data.

The price fell 0.9% in the last 24 hours to $61,974.9 by 01:28 ET (05:28 GMT).

Bitcoin saw some minor relief even from its crash on Tuesday, after Federal Reserve Chair Jerome Powell said current monetary policy was tight enough, indicating that interest rates would not rise further.

Powell cautioned, however, that the central bank is not confident that inflation will return to its 2% annual target.

This came after April data was stronger than expected, potentially setting the stage for a powerful reading later on Wednesday.

Signs of withering capital flows into Bitcoin and cryptocurrency investment products, along with the threat of further regulatory action, have also dampened sentiment towards cryptocurrency markets.

Crypto ETFs in Hong Kong are seeing significant outflows

Three Bitcoin and Ethereum spot exchange-traded funds in Hong Kong recorded excessive outflows of almost $40 million on Monday, wiping out two weeks of inflows since their April 30 debut.

While the immediate cause of the outflow was not clear, it also occurred as sentiment towards Hong Kong and Chinese markets deteriorated amid increased US trade tariffs on Beijing and mixed economic signals from China.

The outflows from Hong Kong ETFs came amid withering capital flows to their US counterparts as the hype around the approval of cash Bitcoin ETFs for US markets has died down.

While the initial buzz around their approval pushed Bitcoin to a record high of over $73,000 in early March, the world’s largest cryptocurrency has mostly traded in the $60,000 to $70,000 range for the past two months, despite few positive signs.

Bitcoin’s halving passed without any price action, and threats of further regulatory action by the U.S. Securities and Exchange Commission also kept investors averse to cryptocurrency markets.

Cryptocurrency Price Today: Altcoins See Extended Losses Ahead of CPI Data

Prices of broader cryptocurrencies also fell as investors became more risk averse ahead of the US CPI data.

The world’s No. 2 token fell by more than 1%, while i lost 3% and 1.2%, respectively.

Gains in meme stocks – like GME and AMC – have also inspired fleeting gains in meme tokens. dropped by over 3% and lost almost 3%.

Stable U.S. inflation is likely to keep interest rates high for an extended period of time – a scenario that bodes ill for cryptocurrency markets, which typically thrive in low-interest-rate, high-liquidity environments.