Bitcoin’s price moved little on Thursday, steadying after steep declines over the past two sessions as traders awaited a slew of upcoming economic data to determine crypto’s next leg of movement.
The world’s largest cryptocurrency fell sharply on Tuesday and Wednesday after the movement of nearly $2 billion tokens between the wallets of a major crypto exchange rattled traders with the prospect of another major sale event.
Signs of dwindling capital flows into crypto also saw Bitcoin remain within a trading range seen for most of this year, even as the price logged wild swings in recent sessions.
Bitcoin steadied at $59,339.3 by 01:19 ET (05:19 GMT), steadying after falling as low as $58,000 earlier in the week.
A drop in the shares of market darling NVIDIA Corporation (NASDAQ:NVDA) also undermined risk appetite, which left crypto prices struggling to make headway.
Inflation, GDP data awaited for more rate cues Crypto markets were still kept off recent lows by persistent optimism over lower U.S. interest rates. Lower rates present a more facilitative environment for speculation- which is a key driver of crypto price action.
U.S. economic readings due this week are likely to factor into the outlook for interest rates. A revised reading on second quarter gross domestic product data is due later on Thursday, coming after a reading released last month showed resilience in the world’s biggest economy.
PCE price index data- the Federal Reserve’s preferred inflation gauge- is due on Friday, and will also be closely watched.
Markets are split between a 25 or 50 basis point cut in September, with any weaker economic data likely to drive expectations for a greater reduction.
But just how much crypto will benefit from lower rates remains to be seen, after a recent report from blockchain research firm Glass Node showed speculative interest in the sector, especially amid retail investors, had largely run dry.
Other capital flows data showed waning enthusiasm among institutional investors towards crypto, as optimism over the launch of spot Bitcoin exchange-traded funds earlier this year petered out.
Crypto price today: altcoins drift higher but remain rangebound Among broader crypto prices, major altcoins clocked some gains, but struggled to break out of losses logged earlier this week.
World no.2 crypto Ether rose 3% to $2,537.46, while XRP and ADA added about 0.5% each.
SOL lagged with a 2.4% decline, while MATIC slid 4.6%, extending steep losses seen earlier this week.
Among meme tokens, DOGE rose 1.5%.
