Investing.com– The price of bitcoin fell slightly on Wednesday, seeing little positive movement even as the dollar weakened, although traders remained largely risk-averse pending key U.S. consumer inflation data. USA.
It fell 0.9% in the last 24 hours to $61,974.9 at 01:28 CET (05:28 GMT).
Bitcoin saw little relief even as it plunged on Tuesday, after Federal Reserve Chairman Jerome Powell said current monetary policy was tight enough, signaling that interest rates will not rise further.
But Powell warned that the central bank had little confidence that inflation was returning to its 2% annual target.
This came after April data came in more positive than expected, which could set the stage for a strong reading later on Wednesday.
Signs of declining capital flows into Bitcoin and cryptocurrency investment products, along with the threat of further regulatory action, also kept sentiment towards cryptocurrency markets muted.
Hong Kong Crypto ETFs See Huge Outflows
Three spot Bitcoin and Ethereum exchange-traded funds in Hong Kong saw huge outflows of nearly $40 million on Monday, wiping out two weeks of inflows since their debut on April 30.
While the immediate reason for the departures was unclear, they also came as sentiment toward Hong Kong and Chinese markets soured amid rising U.S. trade tariffs on Beijing and mixed economic signals from China.
The capital outflows from Hong Kong ETFs came amid a decline in capital inflows to their US counterparts, as enthusiasm over the approval of spot Bitcoin ETFs for US markets faded.
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While initial enthusiasm for its approval drove Bitcoin to all-time highs of over $73,000 in early March, the world's largest cryptocurrency has largely traded within a $60,000 to $70,000 trading range for the past few years. two months, amidst few positive signs.
The Bitcoin halving event passed with little price action, while threats of further regulatory action by the US Securities and Exchange Commission also kept traders reluctant to the cryptocurrency markets.
Crypto Price Today: Altcoins See Prolonged Losses Ahead of CPI Data
Overall cryptocurrency prices also retreated as traders became more risk-averse ahead of the US CPI data.
The world's No. 2 token fell by more than 1%, while losing 3% and 1.2%, respectively.
Gains in meme stocks, such as GME and AMC, also inspired fleeting gains in meme tokens. fell more than 3%, while it lost almost 3%.
Persistent US inflation is likely to keep interest rates high for longer, a scenario that bodes poorly for crypto markets, which typically thrive in low-rate, high-liquidity environments.
