Investing.com– The price of Bitcoin moved little during Friday’s Asian trading session, while cryptocurrency prices in general retreated on expectations of fewer interest rate cuts from the Federal Reserve Reserve, which saw traders move largely towards the greenback.
Even progress towards the creation of an Ether spot trading fund has not helped support sentiment towards cryptocurrency markets.
fell 0.9% over the past 24 hours to $67,030.4 as of 01:56 ET (0556 GMT). The token had fallen as low as $66,000 on Thursday, as the dollar rebounded sharply from one-month lows.
The token was also headed for weekly losses, as growing fears of high interest rates largely offset improving capital flows into cryptocurrency investment products.
Even MicroStrategy Incorporated’s (NASDAQ:) plans to buy more Bitcoin by issuing $500 million in bonds have not spurred much price action.
Bitcoin loses on a weekly basis due to growing interest rate concerns
The world’s largest cryptocurrency has fallen 3.3% over the past seven days as concerns over high, long-term U.S. interest rates hit the cryptocurrency’s prospects.
While weaker-than-expected US inflation data had initially hurt the dollar, Bitcoin took little support from this trend after the Fed said it saw the possibility of only one interest rate cut this year, compared to previous forecasts of three cuts.
Traders thus ruled out expectations of multiple rate cuts, which particularly weighed on speculative assets such as cryptocurrencies. High rates do not bode well for cryptocurrencies, as they limit overall liquidity conditions and discourage betting on high-risk speculative assets.
The dollar benefited from this trade, rebounding from one-month lows.
Cryptocurrency Price Today: Ether Unenthusiastic About ETF Progress
Prices of major cryptocurrencies moved in a flat to low range, while concerns over high interest rates more than offset some positive developments towards a spot Ether ETF.
it rose 0.2% to $3,515.79, and was the only altcoin to trade in the green. Securities and Exchange Commission Chairman Gary Gensler said in testimony before the Senate that he expects spot Ether ETFs to be fully approved by the regulator by the summer.
The token rose as much as 1%, but quickly recouped most of its gains in late trading on Thursday.
Other altcoins have largely fallen. and they lost more than 2% each.
Among memecoins, they are down about 0.5% each.
