$67k lower amid rate cut indicators, mild inflation Via Investing.com
Investing.com– The price of Bitcoin was slightly lower on Thursday after a volatile session as a forecast from the Federal Reserve of higher long-term interest rates largely masked some signs of a long-term cooling of inflation.
It rose 0.4% in the past 24 hours to $67,484.6 at 02:05 ET (06:05 GMT). The token held a reversal this week, rising as high as $70,000 before falling sharply.
Bitcoin is rangebound as the Fed predicts only one rate cut this year
Traders remain increasingly hostile to Bitcoin and broader cryptocurrencies in the face of long-term high US interest rates.
While the Fed kept rates unchanged on Wednesday, as expected, Chairman Jerome Powell said the central bank now saw the possibility of only one rate cut this year, compared to earlier expectations of three cuts.
Several policymakers have also called for no rate cuts this year, saying progress still needs to be made in reducing inflation. The Fed also raised its inflation forecast for the year.
The Fed’s comments come after earlier data on Wednesday showed US consumer inflation fell slightly more than expected in May. While Bitcoin saw some gains after the inflation reading, it lost ground after the Fed’s comments.
High prices reflect poorly on speculative assets such as crypto-currencies, as they limit the amount of money available to invest in the sector. While recent capital flow data showed that institutional investors were still putting some money into crypto, this was not reflected in the token prices.
Now the focus is on inflation data for other signs of US inflation. The reading is expected later on Thursday.
Crypto price today: Altcoins rise lower amid rate jitters
Prospects for longer-term US interest rates have also weighed on broader cryptocurrency prices.
The world’s no.2 token fell 0.3% to $3,499.09, giving up even more of its gains made last month.
and rose between 0.6% and 1.7%, but they have been trading throughout the week.
Among meme tokens, they fell by 1.6% while rising by 3%. But sentiment toward the two cooled significantly in line with declining interest in the meme stock on Wall Street.
Company GameStop Corp (NYSE: ) lost even more on Wednesday and ended most of the rally seen in late May.
