Investing.com– Bitcoin’s price stalls at $63k as its recent rebound peters out, with the market anxiously awaiting more Federal Reserve cues on U.S. interest rates this week. The focus keyphrase “Bitcoin stalls at $63k as rebound peters out” summarizes the current sentiment in the cryptocurrency market.
After the Federal Reserve announced an interest rate cut last week, initiating a cycle of easing, Bitcoin briefly enjoyed an uptick. The lower rates provided a favourable environment for cryptocurrencies. However, the momentum quickly faded as market participants sought additional signals regarding the extent of future Fed rate cuts.
The market’s overall sentiment towards crypto remains tepid, partly due to declining retail interest and an unpredictable regulatory outlook. By 01:53 ET (05:53 GMT) on Tuesday, Bitcoin was down 0.9%, positioning itself at $63,197.1.
Capital Inflows into Crypto Continue for the Second Week
According to data released on Monday by CoinShares, a prominent digital assets manager, crypto investment products saw a second consecutive week of capital inflows. This sustained interest reflects optimism stemming from the Fed’s recent rate cut.
However, the inflows, which totalled $321 million last week, had slowed compared to the previous week. While Bitcoin remained the primary asset attracting these inflows, there was also a notable increase in short-Bitcoin positioning.
Conversely, Ether registered its fifth consecutive week of outflows, despite minor inflows into most other altcoins. Nevertheless, despite these inflows, overall capital entries and trading volumes have significantly decreased from earlier this year, highlighting the ongoing weak sentiment towards cryptocurrencies.
Additionally, the forthcoming U.S. presidential race adds another layer of uncertainty to the crypto landscape. Republican candidate Donald Trump has expressed a pro-crypto stance, whereas Democratic nominee Kamala Harris is expected to continue the current administration’s regulatory measures against crypto.
Altcoin Prices Decline as Fed Cues Awaited
The broader cryptocurrency market mirrored Bitcoin’s downturn. Ethereum, the second-largest crypto, fell by 0.8%, settling at $2,634.20. Other altcoins such as Ripple, Litecoin, and Cardano traded within a flat-to-low range, whereas Solana outperformed with a 1.8% rise.
Even meme tokens experienced declines, with Dogecoin falling by 1.6%. Traders maintained a cautious stance ahead of addresses from various Fed officials this week, including the much-anticipated speech from Federal Reserve Chair Jerome Powell.
Moreover, market participants are keenly awaiting Friday’s release of the Personal Consumption Expenditures (PCE) data, the Fed’s preferred inflation gauge, which could further influence market sentiment.
Stay tuned for more updates and analyses. Remember, navigating through crypto investments requires attentiveness to market cues and strategic decision-making. Click Here For More Trading tips and strategies.
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