Bitcoin
recovers to $69K ahead of Fed rate decision, CPI print By Investing.com
Investing.com – The price of Bitcoin rose higher on Wednesday, recovering from a drop in the previous session when risk appetite was largely limited by the anticipation of a Federal Reserve meeting and key inflation data.
The value jumped 3.5% in the last 24 hours to $69,367.6 at 08:40 ET (12:40 GMT). It fell to $66,000 on Tuesday.
Bitcoin Volatile as Rate Jitters Affect Sentiment
Bitcoin has seen big swings in recent sessions, also rising as high as $72,000, as sentiment towards cryptocurrencies remained tense ahead of more definitive signals on US interest rates.
High fees diminish the appeal of risk-oriented assets like crypto. They also present a more difficult outlook for the sector, by keeping liquidity levels low.
This caused traders to move away from Bitcoin and other cryptocurrencies earlier this week and into assets more protected against rate jitters, such as the dollar.
Although data showed that Bitcoin and other crypto investment products saw inflows of $2 billion in the first week of June, this was not reflected in the price.
The Fed is widely expected to do so at the conclusion of a two-day meeting later on Wednesday. But the central bank could potentially present a more aggressive outlook, especially in the face of sticky inflation and a resilient labor market.
Ahead of the Fed’s decision, key data will be released on Wednesday and is also expected to show that inflation remained stable in May.
Recent jitters about the job market and inflation have caused traders to scale back bets on a rate cut in September, which has boosted and weighed on cryptocurrency prices.
Crypto Price Today: Altcoins Drive Bitcoin Into the Green
In addition to Bitcoin, major altcoins also rose later on Wednesday, recovering from declines seen earlier in the day.
The world’s number 2 token advanced more than 2% to $3,609.66, while ADA and SOL rose between 1.3% and 3.5%. Among meme tokens, DOGE and SHIB rose 2.1% each.
Bitcoin ETFs see outflows of $200 million before CPI and FOMC
Bitcoin ETFs saw outflows for the second day in a row as traders likely reduced risk ahead of key macroeconomic reports scheduled for Wednesday.
According to crypto research firm SoSoValue, the eleven ETFs recorded a combined net outflow of $200 million on Tuesday, the largest since May 1, when outflows reached $580 million. These redemptions occurred during a Bitcoin sell-off, where the asset briefly fell to $66,200 before recovering.
Grayscale’s GBTC led the outflows, accounting for $120 million and continuing its trend as the worst-performing ETF in outflows since its launch in January, accumulating a total of $18 billion in outflows.
Other ETFs, including Ark Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC and VanEck’s HODL, saw outflows ranging from $56 million to $7 million. Neither ETF reported any inflows.
Investors attributed these outflows to precautionary measures ahead of the CPI reading and the conclusion of the two-day Federal Open Market Committee (FOMC) meeting, during which the Federal Reserve’s monetary policy decisions will be announced.
“Markets are [in] risk mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which tells the market how many cuts the Fed anticipates for the rest of 2024,” QCP Capital said in a message broadcast on Tuesday.
However, the optimistic long-term outlook remains unchanged, QCP added.