Investing.com — Bitcoin's price was little changed on Thursday, stabilizing after sharp declines over the past two sessions as traders awaited a slew of upcoming economic data to determine the cryptocurrency's next leg of movement.
The world's largest cryptocurrency fell sharply on Tuesday and Wednesday after the movement of nearly $2 billion worth of tokens between the wallets of a major cryptocurrency exchange rattled traders with the prospect of another major sell-off event.
Signs of declining capital flows into cryptocurrencies also kept Bitcoin within a trading range seen for most of this year, even as the price saw wild swings in recent sessions.
settled at $59,339.3 as of 01:19 ET (05:19 GMT), stabilizing after falling as low as $58,000 earlier in the week.
A drop in shares of market favorite NVIDIA Corporation (NASDAQ:) also undermined risk appetite, leaving cryptocurrency prices struggling to advance.
Inflation and GDP data are expected to provide further clues on rates.
Cryptocurrency markets have stayed away from recent lows due to persistent optimism over lower interest rates in the United States. Lower rates present a more conducive environment for speculation, which is a key factor in cryptocurrency price action.
U.S. economic figures due this week are likely to influence the outlook for interest rates. A revised reading of second-quarter data is due on Thursday, after a reading released last month showed the world's largest economy was resilient.
The data – the Federal Reserve's preferred gauge of inflation – is due out on Friday and will also be closely watched.
Markets are split between a 25- or 50-basis-point cut in September, with any weaker economic data likely to boost expectations for a larger reduction.
But it remains to be seen how much cryptocurrencies will benefit from lower rates, after a recent report from blockchain research firm Glass Node showed that speculative interest in the sector, especially among retail investors, had largely dried up.
Other data on capital flows showed waning enthusiasm among institutional investors for cryptocurrencies, as optimism over the launch of spot Bitcoin exchange-traded funds earlier this year faded.
Cryptocurrency prices today: Altcoins rise but remain range-bound
Among cryptocurrency prices in general, major altcoins posted some gains but struggled to emerge from losses recorded earlier this week.
The world's No. 2 cryptocurrency rose 3% to $2,537.46, while and added around 0.5% each.
lagged behind with a 2.4% drop, while it fell 4.6%, extending the steep losses seen earlier this week.
Among meme tokens, it rose by 1.5%.
