Bitcoin Price Today: Drops to $62K Amid Ongoing Rate Concerns

Bitcoin’s price experienced a decline on Tuesday, reversing some recent gains amid increasing speculation that U.S. interest rates will decrease more slowly than expected. The prevailing risk-averse sentiment in broader financial markets, particularly in equities, also impacted the cryptocurrency sector, contributing to price declines across various digital assets. Investors are on edge as they await more guidance from the Federal Reserve and significant inflation data scheduled for release this week.

At 01:07 ET (05:07 GMT), Bitcoin was down 1.4%, trading at $62,609.1.

### Bitcoin Pressured by Stronger Dollar and Slower Rate Cuts

The strength of the U.S. dollar weighed heavily on the cryptocurrency markets, as it remained close to recent seven-week highs. The dollar’s rise followed the release of nonfarm payrolls data indicating a robust U.S. labor market, which could lead to a more gradual approach to rate cuts by the Federal Reserve.

Market participants are pricing in an 81% likelihood for a 25 basis point cut in November, with a 19% chance of no rate adjustments at all. Traders are also positioning themselves for a higher terminal rate. A slower pace of rate cuts suggests that U.S. interest rates will stay elevated for an extended period, which negatively impacts speculative investments such as cryptocurrencies.

### Anticipation of Fed Minutes and Inflation Data

This week, attention is focused on gaining further insights regarding U.S. interest rates. The minutes from the Fed’s September meeting are set to be released on Wednesday. The central bank had previously cut rates by 50 basis points, signaling the start of an easing cycle, but future cuts will depend on economic data.

Additionally, consumer price index inflation data is expected on Thursday, which will likely influence the interest rate outlook. Several Federal Reserve officials are also scheduled to speak in the coming days.

### Overall Crypto Market Update: Altcoins Retreat

In the broader cryptocurrency market, many altcoins mirrored Bitcoin’s downturn, reversing gains from a weekend rally. Ethereum, the second-largest cryptocurrency by market capitalization, fell by 2.7% to $2,420, while other tokens such as SOL, XRP, and ADA saw losses between 2% and 4%. MATIC dipped slightly by 0.2%, and among meme currencies, DOGE experienced a nearly 5% decline.

Despite recent losses, the crypto market had seen some upward movement in prior sessions, fueled in part by rising expectations surrounding a potential Donald Trump victory in the 2024 presidential election. Betting platform data indicated Trump leading Vice President Kamala Harris by 53% to 46.2%. Trump has consistently taken a supportive stance toward cryptocurrencies, whereas Harris may continue to impose stricter regulations on the industry.