Investing.com – The price fell slightly on Wednesday, continuing recent weakness driven by concerns about the health of the global economy.
At 05:30 ET (09:30 GMT), Bitcoin was trading 0.5% lower at $65,217.0, having posted losses of around 4% over the past trading week, falling below $65,000 on Tuesday for the first time since May 16.
Bitcoin is trading near key levels
The possibility of higher borrowing costs in the US for a longer period of time has cooled enthusiasm for the cryptocurrency market, with Bitcoin being the world’s largest cryptocurrency.
A number of Federal Reserve officials have made clear they need to see more progress in containing inflation, even after last week’s weaker-than-expected U.S. data left the U.S. central bank forecasting only one interest rate cut this year compared to its earlier forecast. regarding three cuts.
At the same time, the latest data, including Tuesday’s US release, suggest that consumers are feeling the pinch of interest rate increases.
Activity is likely to be subdued on Wednesday as the United States observes the June 16 holiday, but bitcoin could be trading near key levels that could determine the near-term trajectory of the largest crypto asset.
According to analytics platform Glassnode, Bitcoin currently shows potential to rebound towards $67,000.
This level could create resistance, however, and breaking through it could put the digital currency on a path towards an even higher target of $69,500. On the other hand, the $65,000 threshold is seen as a key level of psychological support that could play a key role in maintaining investor confidence.
Bitcoin hit a record high of $73,797.68 on March 14 and last tested this level in early June.
Cryptocurrency Price Today: Ether Gains on SEC News
There was more positive news for the broader cryptocurrency market, helped by positive legal news.
rose 2.4% to $3,547.25 after software company Consensys said the U.S. Securities and Exchange Commission was stopping its investigation into whether Ether is a security.
“The SEC Enforcement Division has notified us that it is closing its investigation into version 2.0,” Ethereum developer Consensys said in a June 19 X post.
“This means the SEC will not bring charges that ETH sales constitute securities transactions,” which the company described as “a major win for Ethereum creators, technology providers and industry participants.”
In other countries, both gained about 1.5%, remained largely unchanged, but fell by over 3%.
Financial advisors are slowly adopting Bitcoin ETFs
According to BlackRock’s Samara Cohen, the long-awaited Bitcoin exchange-traded funds launched in January, and financial advisors have been ponderous to adopt them.
For now, about 80% of bitcoin ETF purchases likely came from “self-directed investors who made their own allocation, often through an online brokerage account,” she said at a summit last week.
Cohen, BlackRock’s chief ETF and index investment officer, noted that based on 13-F data from the most recent quarter, hedge funds and brokerage houses were also buyers, but registered investment advisers were a bit more “cautious.”
However, if increased demand does drive bitcoin to a recent record high, according to Eljaboom, a Bitcoin investor and recipient of the Forbes 30 Under 30 list, $9.26 billion worth of shorts could be liquidated, which would cause prices to rise dramatically.
