Investing.com — Bitcoin prices fell on Tuesday as a recent rally lost steam even as capital inflows persisted, with attention squarely focused on a series of U.S. interest rate signals due this week.
The world's largest cryptocurrency had risen after the Federal Reserve cut interest rates last week and announced the start of an easing cycle, with lower rates presenting better prospects for cryptocurrencies.
But this momentum slowed as markets looked for more clues on how much the Fed will cut rates further. Overall sentiment towards cryptocurrencies also remained weak amid waning retail demand and an uncertain regulatory outlook.
fell 0.9% to $63,197.1 as of 01:53 ET (05:53 GMT).
Cryptocurrencies record second week of capital inflows
Data from digital asset manager CoinShares showed on Monday that cryptocurrency investment products recorded a second consecutive week of capital inflows, amid optimism over the Fed's rate cut.
Last week, inflows amounted to $321 million, which was lower than the previous week. Bitcoin was the main focus of inflows, but short positioning in bitcoin also increased.
Ether recorded a fifth consecutive week of outflows, while most other altcoins saw mild inflows.
But despite two weeks of inflows, capital inflows and overall trading volumes were a fraction of those seen earlier this year as sentiment towards cryptocurrencies remained weak.
The prospect of a tight US presidential race also presented an uncertain outlook for cryptocurrencies, given that only Republican presidential candidate Donald Trump has put forward a pro-crypto stance. Democratic candidate Kamala Harris is widely expected to continue the Biden administration’s crackdown on cryptocurrencies.
Cryptocurrency price today: Altcoins retreat on more Fed signals
Cryptocurrency prices in general followed Bitcoin's weak trend. The world's second-largest cryptocurrency fell 0.8% to $2,634.20.
and moved in a flat to down range, while it outperformed, rising 1.8%.
Among meme tokens, it fell by 1.6%.
Traders remained mostly cautious ahead of speeches from a number of Fed officials this week, most notably…
The data, the Federal Reserve's preferred gauge of inflation, is also due out on Friday.
