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drops to $67,000 on inflation fears, Ether rally cools From Investing.com
Investing.com– Bitcoin price fell slightly on Tuesday, while the No. 1 token also rallied. 2 Ether cooled as anticipation of this week’s key inflation data kept traders largely risk averse, especially towards cryptocurrencies.
Enthusiasm over the approval of an exchange-traded fund that directly tracks Ether has also taken a backseat, especially as the Securities and Exchange Commission must now engage with fund managers on their requests to list such a potential product.
Last week, the SEC approved requests from major stock exchanges to list a spot Ether ETF, which triggered a strong rally in the token and cryptocurrency markets in general.
fell 1.3% over the past 24 hours to $67,901.9 as of 01:15 ET (0515 GMT). it fell 2% to $3,844.48, also retreating from two-month highs reached over the weekend.
Interest rate fears grow before inflation data
Fears of higher US interest rates for a longer period remained in focus, especially ahead of key data due later this week.
The reading is the Federal Reserve’s preferred inflation indicator and is likely to impact the central bank’s outlook on rates.
Sentiment towards cryptocurrencies and other risk-oriented assets has been undermined by growing fears that the Fed will keep rates high for longer, especially after a series of officials warned that sticky inflation will delay any monetary easing.
This notion has also kept Bitcoin trading comfortably within an established trading range over nearly three months, and has also limited Ether’s larger gains.
High rates do not bode well for speculative assets such as cryptocurrencies, as they limit the liquidity that can be invested in the space and also increase the attractiveness of low-risk conventional investments such as the dollar and Treasuries.
Cryptocurrency prices did not benefit from the slight decline recorded on Monday.
Before the PCE data, inflation data from , and is also expected this week.
Cryptocurrency price today: altcoin, memecoin subdued
Broader cryptocurrency prices saw little action, as trading volumes were also subdued due to market holidays in the US and UK.
Altcoins and rose less than 1% each, while meme tokens traded in a flat to low range.