Investing.com – The price rose slightly on Friday as investors remained hesitant towards cryptocurrencies ahead of key U.S. inflation data that will likely include the interest rate outlook, although the token continued to post sturdy gains in May.
Cryptocurrency prices recovered slightly after an overnight decline as concerns about longer-term high interest rates remained despite a downward revision to first-quarter data.
Bitcoin rose 1.1% in the past 24 hours to $68,558.50 by 08:32 ET (12:32 GMT), and was expected to rise almost 13% in May.
However, despite the monthly gains, the token still remained within the $60,000 to $70,000 trading range established since mid-March.
Inflation, interest rates in focus ahead of PCE data
Currency concerns were the biggest factor influencing Bitcoin’s price swings, as the prospect of high interest rates dampened the price outlook for the token and the broader cryptocurrency market.
Many Federal Reserve officials have warned in recent sessions that the central bank has no confidence that inflation is coming down, which in turn has thwarted its plans to start cutting interest rates.
Their comments came ahead of key data that is the Fed’s preferred measure of inflation. The reading will be released later on Friday and inflation is expected to moderate slightly in April but remain well above the Fed’s second annual target.
The prospect of high interest rates for longer durations bodes ill for cryptocurrency markets, given that it heralds tight liquidity and reduces the attractiveness of high-risk speculative assets.
Cryptocurrency Price Today: Mixed Altcoins, Ether Set for May Hit on ETF Hype
Broader cryptocurrency markets saw mixed results on Friday.
The world’s No. 2 token rose more than 1.7% to $3,807.08. However, the altcoin was poised to surge nearly 25% in May, with most of its gains coming last week after the Securities and Exchange Commission reported some progress toward approval of an exchange-traded fund that directly tracks the token. However, a decision on the actual spot listing of the ETF has not yet been made.
Meanwhile, it was trading unchanged and 1.5% was added. SOL also excelled in April, growing 30%.
TRUMP meme coin shows volatility after former US president found guilty
A New York jury found former US President Donald Trump guilty in a widely discussed hush money trial.
Following this news, the price of the TRUMP meme coin plummeted by as much as 35%. However, the crypto asset later regained its value and was up 19% at the time of writing.
On Thursday, a jury found Trump guilty on all 34 counts of falsifying business records, making him the first U.S. president to be convicted of a crime.
Meanwhile, other meme coin prices were subdued, remaining flat and down 0.3%. However, the rate was 10% higher.
