From Investing.com: 2024-06-12 02:00:14

Bitcoin price dropped on Wednesday due to cautious sentiment before the Federal Reserve meeting and key inflation data. The price fell 0.8% to $67,372.3 in the past 24 hours, reaching as low as $66,000 on Tuesday. Investors are nervously monitoring interest rate developments and their impact on crypto assets.

Bitcoin experienced volatile swings, reaching highs of $72,000 recently, as investors await clarity on U.S. interest rate policies. High rates make risk-driven assets like crypto less attractive, leading traders to shift towards more stable assets like the dollar. Despite $2 billion in crypto inflows, prices have not reflected these investments.

The Federal Reserve is expected to make announcements after its meeting, potentially showing a more hawkish stance due to inflation concerns and a resilient labor market. Inflation data for May is also being closely watched for any signs of continued pressure. Recent market uncertainty has caused traders to reduce bets on a rate cut in September, impacting both traditional and crypto markets.

Altcoins, including Ethereum and meme tokens, fell on Wednesday amid ongoing concerns over U.S. interest rates. Ethereum dropped over 1% to $3,511.91, reversing gains made in May on anticipation of a new exchange-traded fund. Other altcoins, such as XRP and Dogecoin, also experienced losses as sentiment towards meme tokens cooled. Additionally, meme stocks like GameStop saw declines after a key influencer returned to social media.

Read more at Investing.com: down to $67k with Fed rate decision, CPI in focus By Investing.com