Investing.com– The price of bitcoin fell on Wednesday, further reversing the rally seen over the weekend, as lingering concerns about increased regulatory scrutiny against the cryptocurrency industry kept traders largely cautious. the time to buy.
Broader cryptocurrency prices were also pressured by uncertainty over US interest rates, after several Federal Reserve officials signaled this week that the central bank was more likely to keep rates unchanged in 2024. They recovered from recent losses after his comments.
fell 1.5% in the last 24 hours to $62,523.2 at 00:44 ET (04:44 GMT). The world's largest cryptocurrency remained comfortably within a trading range seen for most of the past two months as the token's momentum slowed after it hit an all-time high in March.
Capital flows data released earlier this week also showed that crypto investment products, particularly Bitcoin, experienced a third consecutive week of strong capital outflows as enthusiasm for exchange-traded funds launched earlier of this year.
Regulatory Jitters Keep Crypto Sentiment Weak
A report published earlier this week showed that more than 90% of transactions in stablecoins, which are an important aspect of cryptocurrency trading, were inorganic and not from real users, raising questions about how much retail demand there was actually for cryptocurrencies.
The report also raised concerns about more regulatory action against stablecoin operators, specifically, which is the largest of them all.
In cases of actual regulatory action, commercial application Robinhood Markets Inc (NASDAQ đŸ™‚ said it was facing possible regulatory action by the Securities and Exchange Commission over the nature of crypto tokens traded on its platforms. The SEC has long argued that crypto tokens are securities and is currently embroiled in legal battles with XRP issuer and cryptocurrency exchange Coinbase (NASDAQ:) over the matter.
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The SEC is also reportedly investigating the world's number one. 2 crypto Ethereum as potentially a security, and this week postponed until July the decision to approve spot-traded Ethereum ETFs for US markets.
But the regulator is expected to reject applications for the ETF.
Crypto Price Today: Altcoins Fall Amid Rate Uncertainty
Broader cryptocurrency prices retreated, also pressured by a resurgence in the dollar, as Federal Reserve officials said the central bank was likely to leave interest rates unchanged this year.
fell 1.5% to $3,018.85, while and fell 5% and 3%, respectively.
Longer high US rates bode poorly for cryptocurrency markets as the sector generally benefits from a low rate, high liquidity environment.
