Bitcoin Price Today: Dips to $60K as CPI Takes Center Stage

Bitcoin’s price experienced a decline on Thursday, continuing its downward trend as investor sentiment remained cautious ahead of important U.S. inflation data that could influence future interest rate decisions.

The leading cryptocurrency faced additional pressure from speculation regarding a potential sale of a significant amount of tokens held by the U.S. government, although such a sale seems unlikely in the near future.

Overall, the cryptocurrency market also saw a dip, underperforming compared to gains in other risk-sensitive markets, particularly stocks. As of 00:50 ET (04:50 GMT), Bitcoin was down 2.3% at $60,919.2.

CPI Data Awaited for More Rate Insights

Bitcoin’s decline was further exacerbated by a degree of strength in the dollar, amid rising uncertainty about the Federal Reserve’s plans regarding interest rate cuts. The minutes from the Fed’s September meeting indicated that policymakers supported the central bank’s recent 50 basis point cut but were uncertain about the pace of future cuts.

This uncertainty followed robust payroll data from the previous week, which led traders to revise their expectations, shifting their focus from a 50 basis point cut in November to a more likely 25 basis point reduction.

The consumer price index (CPI) data scheduled for later on Thursday is now a focal point for gauging the trajectory of interest rates. Analysts anticipate a slight easing in the headline CPI for September, while core CPI is expected to remain stubbornly high. The expectation of sustained high U.S. interest rates poses challenges for the cryptocurrency market, as it suggests reduced liquidity for investment in high-risk assets.

Speculation Surrounds Government Token Sale

Speculation about a potential large-scale token sale by the U.S. government, particularly tokens seized from the Silk Road marketplace, has also negatively impacted Bitcoin. Earlier this week, the Supreme Court upheld a ruling that requires the government to liquidate 69,370 Bitcoin taken from this marketplace.

While an imminent sale does not appear likely, should it occur, approximately $4 billion worth of Bitcoin could be dumped onto the open market, which could severely affect prices. Earlier this year, token distributions from the now-defunct crypto exchange Mt. Gox had already put downward pressure on Bitcoin prices.

Crypto Market Update: Altcoins Follow Bitcoin’s Decline

In the broader cryptocurrency market, the second-largest cryptocurrency, Ether, fell by 2.1% to $2,395.41. Other cryptocurrencies, including SOL, XRP, and ADA, saw declines ranging from 1% to 3%, while MATIC experienced a 0.3% decrease. Among meme tokens, DOGE also saw a slight reduction of 0.3%.