Cryptocurrency Market Update: Bitcoin Price Decline Continues
Bitcoin Price Decline
Bitcoin price fell slightly on Thursday as risk appetite remained weak amid uncertainty over U.S. interest rates and easing capital flows. The cryptocurrency dropped 0.9% in the past 24 hours to $65,525.6, trading below its record highs from March. Traders remained cautious due to mixed signals on U.S. interest rate cuts and upcoming key economic data releases.
Market Uncertainty
Bitcoin stayed rangebound as traders awaited clarity on interest rate policies. The token received little support from the broader market, with the stock market also experiencing volatility. Federal Reserve Chair Jerome Powell’s comments on interest rates lacked specifics, leaving investors uncertain about future monetary policy decisions.
Altcoin Performance
Other major cryptocurrencies like Ethereum and XRP saw muted movements as capital flows continued to favor Bitcoin. Ethereum rose slightly while XRP fell to a one-month low. The focus remained on regulatory developments, with the SEC decision on spot exchange-traded funds for Ethereum expected in May.
Market Trends
Recent data from digital asset manager CoinShares indicated that capital inflows into cryptocurrencies were biased towards Bitcoin. While inflows resumed after a period of outflows, ETF activity slowed down, signaling a shift in market dynamics. Daily trading turnover decreased, reflecting a cooling off of the hype surrounding Bitcoin ETF approvals.
Future Outlook
The approval of spot Bitcoin ETFs earlier in the year drove the token’s rally to record highs. However, ongoing regulatory developments and market trends suggest a more cautious approach from investors. With uncertainty lingering in the market, the cryptocurrency sector is likely to see continued volatility in the coming weeks.
