Bitcoin fell slightly on Wednesday, remaining rangebound amid mounting uncertainty over the path of U.S. interest rates, especially ahead of key inflation data due in the coming days.
Broader cryptocurrency prices also tread water, with the sector having largely lagged a broader rally in risk-driven markets, as traders priced in greater conviction that the Federal Reserve will cut interest rates next week.
Bitcoin fell 1.3% to $111,576.5 by 02:04 ET (06:04 GMT).
Major crypto stocks, including Circle Internet Group Inc (NYSE:CRCL) and Bullish Inc (NYSE:BLSH), rebounded sharply from recent losses in overnight trade on Tuesday. But this did not translate into crypto price gains.
Bitcoin stalls ahead of inflation data
The world’s largest crypto remained largely within a tight trading range seen for nearly a month, after it tumbled from record highs hit in mid-August.
Uncertainty over the U.S. economy and interest rates was a major factor in Bitcoin’s performance, as traders avoided speculative assets in favor of more economically sensitive sectors.
A rally in technology stocks, which Bitcoin tends to track, was also driven chiefly by optimism over artificial intelligence, to which crypto markets have little exposure or relevance.
While Bitcoin had rallied to record highs on optimism over more crypto-friendly regulation in the U.S., markets were now awaiting another similar catalyst.
Emerging doubts over the long-term viability of corporate Bitcoin buying also weighed on crypto sentiment. The coin showed little positive reaction to recent buy actions by major corporate holders MicroStrategy (NASDAQ:MSTR) and Metaplanet Inc (TYO:3350) earlier in September.
Focus is now squarely on upcoming U.S. inflation data for more cues on interest rates. Lower rates tend to benefit assets such as crypto, given that they free up more liquidity to be deployed for speculative trading.
U.S. producer price index inflation data is due later on Wednesday, while consumer price index inflation data is due on Thursday. The readings will be closely watched for any signs of increasing price pressures, especially given that higher U.S. import tariffs took effect from August.
The reading comes just a week before a Federal Reserve meeting, for which markets are pricing in a 93.1% chance that the central bank will cut rates by 25 basis points, CME Fedwatch showed. Markets are also pricing in a 6.9% chance for a 50 bps cut.
Crypto price today: Altcoins drift lower with Bitcoin
Broader crypto prices drifted lower on Wednesday, tracking weakness in Bitcoin.
World no.2 crypto Ether fell 1.4% to $4,304.15, while XRP fell 1.4% to $2.9510.
Solana rose 0.4%, while Cardano lost 1%.
Among meme tokens, Dogecoin fell 0.7%, while $TRUMP was flat.
Source :
https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-down-to-1115k-amid-rates-inflation-angst-4232608
