Investing.com — Bitcoin price fell slightly on Thursday amid caution over an upcoming U.S. inflation reading that is likely to influence the outlook for interest rate cuts.
But the world's largest cryptocurrency was suffering a sharp decline in August as a broader risk-off movement in financial markets hit cryptocurrency prices particularly hard.
fell 1% to $58,852.9 as of 01:55 ET (05:55 GMT), and was on track to lose nearly 9% in August.
Bitcoin posts losses in August amid a series of obstacles
Bitcoin spent most of August on a downward trend as the world’s largest cryptocurrency was hit by lingering concerns over token distributions and sell-off events, especially from the defunct Mt Gox exchange.
Slowing capital inflows into cryptocurrencies also weighed, especially as initial enthusiasm for the launch of spot Bitcoin exchange-traded funds now appeared to have faded.
This, according to a recent report from blockchain analytics firm Glassnode, appeared to have largely quashed speculative activity in the token, which showed few immediate signs of price movement.
Retail interest in Bitcoin has also largely declined in recent months.
Concerns about a US recession triggered sharp losses in global financial markets in early August, and cryptocurrencies were no exception. But while broader markets, especially stocks, have recovered from these initial losses, cryptocurrencies have so far struggled.
Bitcoin established a trading range of $50,000 to $60,000 over the past month, and has struggled to stay above $60,000 for extended periods.
Cryptocurrency prices today: PCE data in sight, but caution remains
Cryptocurrency prices in general fell along with Bitcoin and also recorded losses in August.
The world's No. 2 cryptocurrency fell 1% to $2,515.61 and was down a massive 22.2% in August, its worst month since the crash recorded in January 2022.
Other altcoins fell between 0.4% and 5%, and also fell in August. It lost 3.3%.
Markets were largely on edge ahead of key data due later in the day. The reading is the Federal Reserve's preferred gauge of inflation and is likely to influence the central bank's stance on interest rates.
Lower fees bode well for cryptocurrencies as they free up more liquidity for speculative trading.
Traders are pricing in a higher probability of a 25 basis point cut in September, according to .
Elon Musk wins lawsuit over Dogecoin manipulation, prices barely change
Among meme tokens, it fell 1%, receiving little support from the dismissal of a lawsuit alleging that Elon Musk and Tesla (NASDAQ:) manipulated the price of the meme token.
Musk had made a series of posts on the social media website Twitter, now known as X, promoting Dogecoin.
He had also briefly hinted at the possibility of accepting DOGE as a form of payment for Tesla vehicles. The automaker currently accepts DOGE as a form of payment for Tesla products, according to its website.
