Investing.com– Bitcoin’s price fell on Wednesday, extending its decline from the previous session as risk appetite was largely restrained by anticipation of a Federal Reserve meeting and key inflation data.

The stock fell 0.8% in the last 24 hours to $67,372.3 by 01:34 ET (05:34 GMT). On Tuesday, it dropped to $66,000.

Bitcoin is volatile as the price fluctuates due to sentiment

Bitcoin has seen wild swings in recent sessions and also surged as high as $72,000 as cryptocurrency sentiment remained on edge ahead of more decisive US interest rate signals.

High rates reduce the attractiveness of risk-based assets such as cryptocurrencies. They also present a more challenging outlook for the sector by maintaining low levels of liquidity.

This caused investors to move away from Bitcoin and other cryptocurrencies this week in favor of assets better insulated from exchange rate fluctuations, such as the dollar.

Although data showed that Bitcoin and other crypto investment products saw an inflow of $2 billion in the first week of June, this was not reflected in the price.

The Fed is widely expected to end its two-day meeting later on Wednesday. However, the central bank could potentially offer a more hawkish outlook, especially in the face of persistent inflation and a resilient labor market.

Ahead of the Fed’s decision, key data will be released on Wednesday and are also expected to show that inflation remained unchanged in May.

Recent labor market volatility and inflation have caused investors to reduce bets on a rate cut in September, which has increased and weighed on cryptocurrency prices.

Cryptocurrency Price Today: Altcoins Fall Amid Price Swings

Apart from Bitcoin, major altcoins also lost value on Wednesday amid continued volatility over U.S. interest rates.

The world’s No. 2 token fell more than 1% to $3,511.91, further reducing gains made through May on hype around the Ether-listed fund.

and fell in the range of 1.2% to 2.5%. Among meme tokens, and dropped 1.5% and 2.4%, respectively.

Sentiment for meme tokens also seemed to chilly along with meme stocks. GameStop company (NYSE:) erased most of the gains it made in behind schedule May after a major influencer resumed posting on social media after an extended hiatus.