Investing.com– Bitcoin fell slightly on Thursday on concerns about upcoming U.S. inflation data that is likely to weigh on the prospects for interest rate cuts.
However, the world’s largest cryptocurrency saw a edged decline in August as widespread risk aversion in financial markets hit cryptocurrency prices particularly tough.
fell 1% to $58,852.90 by 01:55 ET (05:55 GMT) and was forecast to lose nearly 9% in August.
Bitcoin Nurtures August Losses Amid Series of Headwinds
Bitcoin spent much of August on a downtrend as the world’s largest cryptocurrency was hit by ongoing concerns about token distribution and mass sell-offs, particularly those led by the shuttered Mt Gox exchange.
The slowdown in capital flows into cryptocurrencies has also played a role, especially as the initial hype surrounding the launch of Bitcoin ETFs has apparently died down.
According to a recent report by blockchain analytics firm Glassnode, this has largely curbed speculative activity on the token, which has not given any direct signals on price changes.
Recent months have also seen a significant decline in interest in Bitcoin among retail customers.
Fears of a U.S. recession triggered deep losses across global financial markets in early August, with cryptocurrencies no exception. But while broader markets, especially stocks, have recovered from those initial losses, cryptocurrencies have struggled so far.
Over the past month, Bitcoin’s price has fluctuated between $50,000 and $60,000 and has struggled to stay above $60,000 for an extended period.
Cryptocurrency Price Today: PCE Data Pending, Caution Remains
Prices of broader cryptocurrencies fell alongside bitcoin prices and also posted losses in August.
The world’s second-largest cryptocurrency fell 1% to $2,515.61, having fallen 22.2% in August, its worst month since the January 2022 crash.
Other altcoins fell between 0.4% and 5% and also saw a 3.3% decline in August.
Markets were largely on edge ahead of key data due later in the day. The reading is the Federal Reserve’s preferred inflation gauge and will likely have an impact on the central bank’s stance on interest rates.
Lower interest rates are good for cryptocurrencies because they free up more liquidity for speculative trading.
According to , investors are pricing in a higher probability of a 25 basis point rate cut in September.
Elon Musk Wins Dogecoin Manipulation Trial, Prices Little Changed
Meme tokens fell 1% as support for the dismissal of a lawsuit accusing Elon Musk and Tesla (NASDAQ:) of manipulating the price of a meme token fell delicate.
Musk posted a series of posts on the social networking site Twitter, now known as X, in which he promoted Dogecoin.
He also briefly mentioned the possibility of accepting DOGE as payment for Tesla vehicles. The automaker currently accepts DOGE as payment for Tesla goods, according to its website.
