News
slipped to $61,000 amid dollar pressure and inflation jitters By Investing.com
Investing.com– The price of Bitcoin slipped lower on Monday, extending a deep decline from last week, as concerns over U.S. interest rates and anticipation of key inflation data kept traders largely biased toward the dollar.
Broader cryptocurrency prices were also pressured by a strong dollar, as the greenback neared a two-month high following robust data from the U.S. Purchasing Managers’ Index.
fell 4.9% over the past 24 hours to $61,233.4 as of 08:37 ET (12:37 GMT).
Bitcoin under pressure from strong dollar, PCE inflation expected
The world’s largest cryptocurrency suffered steep losses over the past week as traders became skeptical about the timing of interest rate cuts by the Federal Reserve.
This sentiment is likely to see little sign of improvement this week, especially ahead of key data due on Friday.
The reading is the Fed’s preferred inflation indicator and is likely to impact the central bank’s outlook on interest rates in coming months. While Friday’s data is expected to show a slight slowdown in inflation, the figure is still expected to remain well above the Fed’s 2% annual target, giving the central bank more room to keep rates high.
High rates do not bode well for cryptocurrencies, as they diminish the attractiveness of speculative and risk-oriented assets such as cryptocurrencies.
Cryptocurrency Price Today: Altcoins Sinking Deeper Than Bitcoin
Major altcoins have seen much deeper losses than Bitcoin, as a series of token unlocks, declining institutional demand, and a fair amount of profit-taking have put pressure on cryptocurrency prices.
Recent capital flow data has shown that institutional demand, particularly for cryptocurrency investment products, has remained largely focused on Bitcoin. But Bitcoin also saw strong outflows in early June.
The world’s No. 2 token fell more than 5% to $3,320.76, hitting a one-month low, as it largely consolidated gains made amid hype over an Ether spot exchange-traded fund.
slipped 1.9%, while and slipped 3.5% and 4.6% respectively. Both tokens have seen some gains in recent sessions.
Among meme tokens, e fell 5.5% and 6.5% respectively.
Mt.Gox will begin Bitcoin redemptions in July
Defunct bitcoin exchange Mt. Gox said Monday it will begin distributing assets stolen to customers in a 2014 hack starting in the first week of July, a move that comes after years of shifting deadlines.
Nobuaki Kobayashi, the rehabilitation trustee, said on the Mt. Gox website: “The rehabilitation trustee is preparing to make refunds in Bitcoin and under the rehabilitation plan. Refunds will be made from the beginning of July 2024,” adding that due diligence and security measures are needed before payments can proceed.
These redemptions are expected to increase selling pressure on the bitcoin market. Early investors will receive assets now valued much higher than those entered before 2013, leading many to sell at least part of their holdings, according to traders.
Mt. Gox, once the world’s leading cryptocurrency exchange, handled more than 70% of all bitcoin transactions in its early years. In early 2014, a cyber attack resulted in the loss of approximately 740,000 bitcoins (now worth $15 billion). This was the largest of several attacks on the exchange between 2010 and 2013.