Bitcoin price fell on Wednesday, extending a decline from the prior session as risk appetite was largely constrained by anticipation of a Federal Reserve meeting and key inflation data.
The world’s biggest cryptocurrency fell 0.8% in the past 24 hours to $67,372.3 by 01:34 ET (05:34 GMT). It had fallen as low as $66,000 on Tuesday.
Bitcoin volatile as rate jitters bash sentiment Bitcoin clocked wild swings in recent sessions, having also risen as far as $72,000 as sentiment towards cryptocurrencies remained on edge before more definite cues on U.S. interest rates.
High rates diminish the appeal of risk-driven assets like crypto. They also present a tougher outlook for the sector by keeping liquidity levels low.
This saw traders pivot out of Bitcoin and other cryptos this week, and into assets more insulated against rate jitters, such as the dollar.
While data showed Bitcoin and other crypto investment products saw $2 billion worth of inflows in the first week of June, this was not reflected in the price.
The Fed is widely expected to keep rates unchanged at the conclusion of a two-day meeting later on Wednesday. But the central bank could potentially present a more hawkish outlook, especially in the face of sticky inflation and a resilient labor market.
Before the Fed decision, key consumer price index data is due on Wednesday, and is also expected to show inflation remained sticky in May.
Recent jitters over the labor market and inflation saw traders scale back bets on a rate cut in September, which boosted the dollar and weighed on crypto prices.
Crypto price today: Altcoins fall amid rate jitters Beyond Bitcoin, major altcoins also retreated on Wednesday amid persistent jitters over U.S. interest rates.
World no.2 token Ether fell over 1% to $3,511.91, further trimming gains made through May on hype over a spot Ether exchange-traded fund.
ADA, XRP and SOL fell between 1.2% and 2.5%. Among meme tokens DOGE and SHIB fell 1.5% and 2.4%, respectively.
Sentiment towards meme tokens also appeared to be cooling in tandem with meme stocks. GameStop Corp (NYSE:GME) wiped out most of its gains made in late-May, after a major influencer resumed posting on social media after an extended break.
