Investing.com– Bitcoin’s price fell on Monday, extending last week’s deep decline, as concerns about U.S. interest rates and anticipation of key inflation data kept investors largely bullish on the dollar.
Broader cryptocurrency prices were also pressured by a powerful dollar as the dollar edged closer to a two-month high following solid U.S. purchasing managers’ index data.
fell 2.4% in the last 24 hours to $62,850.7 by 00:59 ET (04:59 GMT).
Bitcoin under pressure from powerful dollar, PCE inflation expected
The world’s largest cryptocurrency has suffered weighty losses over the past week as investors become increasingly skeptical about the timing of the Federal Reserve’s interest rate cuts.
This sentiment is unlikely to show any signs of improvement this week, especially ahead of key data released next Friday.
This reading is the Fed’s preferred measure of inflation and will likely be included in the central bank’s interest rate forecasts in the coming months. While Friday’s data is expected to show some delicate cooling in inflation, the reading is still expected to remain well above the Fed’s annual target of 2%, giving the central bank more leeway to keep interest rates high.
High rates bode poorly for cryptocurrencies, given that they reduce the attractiveness of speculative risk-based assets such as cryptocurrencies.
Cryptocurrency Price Today: Altcoins Sinking Deeper Than Bitcoin
Major altcoins have seen much deeper losses than Bitcoin as a enormous number of tokens are unlocked, institutional demand declines and a hearty dose of profit-oriented cryptocurrency prices come under pressure.
The latest capital flow data showed that institutional demand, especially for crypto investment products, remained largely focused on Bitcoin. But even Bitcoin recorded enormous outflows in early June.
The world’s No. 2 token fell 4.2% to $3,366.81, hitting a one-month low as it largely consolidated gains made on hype around the Ether spot exchange-traded fund.
decreased by 3.3% and by 4.3% and 7.4%, respectively. Both tokens have seen some gains in recent sessions.
Among meme tokens, and dropped 4.7% and 5.8%, respectively.
