The world’s biggest 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 crypto.
But this momentum slowed as markets sought more cues on how much the Fed will cut rates further. Broader sentiment towards crypto also remained weak amid waning retail demand and an uncertain regulatory outlook.
Bitcoin fell 0.9% to $63,197.1 by 01:53 ET (05:53 GMT).
Data from digital assets manager CoinShares showed on Monday that crypto investment products logged a second straight week of capital inflows, amid optimism over the Fed’s rate cut.
Inflows amounted to $321 million last week, slowing from the week prior. Bitcoin was the primary focus of the inflows, but short-Bitcoin positioning also increased.
Ether clocked a fifth straight week of outflows, while most other altcoins logged mild inflows.
But despite the two weeks of inflows, overall capital inflows and trading volumes were at a fraction of those seen earlier this year, as sentiment towards crypto remained weak.
The prospect of a tight U.S. presidential race also presented an uncertain outlook for crypto, given that only Republican presidential candidate Donald Trump has presented a pro-crypto stance. Democratic nominee Kamala Harris is widely expected to continue the Biden administration’s crackdown against crypto.
Broader crypto prices tracked weakness in Bitcoin. World no.2 crypto Ether fell 0.8% to $2,634.20.
XRP, SOL, and MATIC moved in a flat-to-low range, while ADA outperformed, rising 1.8%.
Among meme tokens, DOGE fell 1.6%.
Traders remained mostly cautious before addresses from a slew of Fed officials this week- most notably Chair Jerome Powell.
PCE price index data- the Fed’s preferred inflation gauge- is also due on Friday.
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