Investing.com– Bitcoin fell Tuesday as a recent rebound lost momentum, even as capital inflows continued. Attention focused on a series of U.S. interest rate signals due this week.
The world’s largest cryptocurrency rose after the Federal Reserve cut interest rates last week and announced the start of an easing cycle, with lower interest rates creating brighter prospects for cryptocurrencies.
But that momentum has faded as markets look for more clues about how much the Fed will cut rates. Broader sentiment toward cryptocurrencies also remained faint amid weakening retail demand and an uncertain regulatory outlook.
fell 0.9% to $63,197.1 by 01:53 ET (05:53 GMT).
Crypto records second week of capital inflows
Data from digital asset manager CoinShares on Monday showed that cryptocurrency investment products saw a second straight week of capital inflows, boosted by optimism about the Fed’s interest rate cut.
Inflows totaled $321 million last week, down from the previous week. Bitcoin was the main target of inflows, but Bitcoin tiny positions also increased.
Ether saw its fifth consecutive week of outflows, while most other altcoins saw moderate inflows.
However, despite the two-week inflow, total capital inflows and trading volume were a fraction of those seen earlier this year, and sentiment towards cryptocurrencies remained faint.
The prospect of a tight U.S. presidential race also presented uncertain prospects for cryptocurrencies, given that only Republican presidential candidate Donald Trump has outlined a pro-crypto stance. Democratic candidate Kamala Harris is widely expected to continue the Biden administration’s crackdown on cryptocurrencies.
Cryptocurrency Price Today: Altcoins Pull Back on Further Fed Signals
Broader cryptocurrency prices tracked Bitcoin’s weakness. The world’s No. 2 cryptocurrency fell 0.8% to $2,634.20.
and traded flat to low, but outperformed, rising 1.8%.
Among meme tokens, the decline was 1.6%.
Traders remained cautious ahead of Federal Reserve officials’ speeches this week, in particular .
the data – the Fed’s preferred inflation gauge – is due to be released on Friday.
