Bitcoin Price Today: Stalls at $63K as Rebound Pauses, Awaiting More Fed Cues

Bitcoin Price Decline Amid Fed Rate Cut Speculation

Bitcoin’s price experienced a setback on Tuesday after a brief rebound, despite continued capital inflows. The market’s attention has shifted to upcoming indications regarding U.S. interest rates this week.

The leading cryptocurrency had seen a rise following the Federal Reserve’s recent interest rate cut and announcement of an easing cycle, which typically enhances the outlook for cryptocurrencies. However, this positive momentum slowed as investors sought clarity on the magnitude of future rate cuts. Additionally, the overall sentiment towards cryptocurrencies remained subdued due to diminishing retail demand and an unclear regulatory environment.

As of 01:53 ET, Bitcoin was down 0.9%, trading at $63,197.1.

Capital Inflows Continue for Crypto

Recent data from a digital asset management firm revealed that cryptocurrency investment products have recorded a second consecutive week of capital inflows, driven by optimism surrounding the Fed’s decision to lower rates. Inflows reached $321 million last week, a decrease from the previous week. Bitcoin was the primary beneficiary of these inflows, although there was also an increase in short positions against Bitcoin.

Conversely, Ether has noted its fifth week of outflows, while other altcoins experienced slight inflows. Despite the recent positive inflow trend, overall capital inflows and trading volumes remained significantly lower compared to earlier in the year, reflecting a continuation of weak sentiment in the crypto market.

The looming U.S. presidential race adds to the uncertainty in the crypto landscape, particularly since only Republican candidate Donald Trump has shown a supportive stance towards cryptocurrencies. In contrast, Democratic nominee Kamala Harris is anticipated to maintain the current administration’s restrictive approach to crypto.

Crypto Market Overview: Altcoins Follow Bitcoin’s Lead

The broader cryptocurrency market mirrored Bitcoin’s decline. Ether, the second-largest cryptocurrency, fell by 0.8%, trading at $2,634.20. Other major cryptocurrencies such as XRP, Solana, and MATIC remained in a stable to slightly lower range, while Cardano saw a boost, rising by 1.8%. Among meme coins, Dogecoin dropped by 1.6%.

Traders are exercising caution ahead of a series of announcements from Federal Reserve officials this week, particularly from Chair Jerome Powell. Additionally, data from the PCE price index— the Fed’s favored measure of inflation— is expected to be released on Friday.