Bitcoin Price Today: Stalls at $63K as Rebound Weakens, Awaiting More Fed Signals

Bitcoin Price Dip Amid Continued Capital Inflows and Fed Rate Speculations

Bitcoin’s price experienced a decline on Tuesday after a brief recovery, even as capital inflows remained steady. The attention has shifted to an array of indications regarding U.S. interest rates expected this week.

Following a drop in interest rates announced by the Federal Reserve last week, Bitcoin had seen an increase, as lower rates typically enhance the outlook for cryptocurrencies. However, this upward momentum encountered resistance as investors awaited more guidance on the potential for additional rate cuts. Overall sentiment towards cryptocurrencies has been weak, driven by reduced retail demand and an ambiguous regulatory environment.

As of 01:53 ET, Bitcoin dropped 0.9% to $63,197.1.

Consistent Capital Inflows in the Crypto Market

Data from a digital asset management firm indicated that cryptocurrency investment products recorded a second consecutive week of capital inflows, buoyed by optimism over the Fed’s recent rate cut. Last week, total inflows reached $321 million, albeit with a slowdown compared to the previous week. While Bitcoin was the primary recipient of these inflows, there was also an uptick in short-Bitcoin positions.

In contrast, Ethereum experienced its fifth consecutive week of outflows, while most other altcoins saw moderate inflows. Despite the observed capital inflows, overall trading volumes and inflows remained significantly lower than those witnessed earlier in the year, reflecting continued weak sentiment towards cryptocurrencies.

The looming U.S. presidential election presents an additional layer of uncertainty for the crypto market. Only the Republican candidate has expressed a pro-crypto position, while the Democratic nominee is anticipated to uphold the current administration’s stringent stance on cryptocurrencies.

Current Crypto Prices and Market Trends

The broader cryptocurrency market mirrored Bitcoin’s downturn. Ethereum, the second-largest cryptocurrency, decreased by 0.8% to $2,634.20. Other cryptocurrencies, including XRP, SOL, and MATIC, remained stable with minimal fluctuations, while ADA stood out with a 1.8% increase. Among meme tokens, DOGE fell by 1.6%.

Traders are exercising caution ahead of upcoming statements from several Federal Reserve officials, particularly Chair Jerome Powell. Additionally, data on the PCE price index, which is the Fed’s favored measure of inflation, is scheduled to be released on Friday.