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down to $61,000 amid regulatory nervousness and inflation anxiety By Investing.com
Investing.com– Bitcoin price fell on Tuesday, extending recent declines as a mix of regulatory concerns, particularly over U.S. action and German government sales, along with broader risk aversion, held Cryptocurrency prices are under pressure.
It fell 2.4% over the past 24 hours to $61,332.0 as of 01:22 ET (0522 GMT). In overnight trading it had fallen to $59,215.
The cryptocurrency sell-off has been driven by a storm of several regulatory factors that, along with angst over U.S. interest rates, have pushed prices more generally lower. Cryptocurrency investment products have also seen two consecutive weeks of heavy capital outflows.
Bitcoin price is under pressure due to German sell-off fears and inflationary angst
Bitcoin has posted steep losses over the past week amid reports that the German government was selling Bitcoin confiscated from a piracy website. Reports claim that German police had sold around 3,000 tokens of the 50,000 initially confiscated.
The reports of the German sales were accompanied by other reports that the US Commodity Futures Trading Commission was investigating market maker Jump Trading over its cryptocurrency trading activities. Jump president Kanav Kariya also said he will leave the company.
The reports fueled broader risk-off sentiment in cryptocurrency markets, as traders focused on the dollar ahead of key US inflation data due this Friday. The data, which is the Federal Reserve’s preferred inflation gauge, is expected to offer further guidance on interest rates this week.
Growing fears of high rates have hit cryptocurrency markets over the past week and have shown little sign of improvement. The strength of the attractiveness of cryptocurrencies has also diminished.
Cryptocurrency investment products experience sustained outflows
Data from digital asset manager CoinShares showed on Monday that cryptocurrency investment products saw outflows totaling about $584 million, most of it directed into U.S. Bitcoin exchange-traded funds.
Bitcoin products saw outflows of $630 million, while altcoin products saw mild inflows as investors saw the recent price collapse as a buying opportunity.
Cryptocurrency price today: Altcoins rise but fuel losses
Broader cryptocurrency prices rose on Tuesday, with major altcoins recovering after sharp losses last week.
The world’s No. 2 token rose 0.2% to $3,377.80, after giving back much of the gains it made on the back of hype around a spot Ether ETF.
and grew between 0.3% and 10%, with leading earnings among its competitors, albeit with reduced trading volumes.
Among the meme tokens, about 2% each is added.