Investing.com– Bitcoin price moved little in Asian trade on Friday, while broader cryptocurrency prices retreated as forecasts for fewer interest rate cuts by the Federal Reserve saw traders pivot largely into the greenback.
More progress towards a spot Ether exchange-traded fund also did little to shore up sentiment towards cryptocurrency markets.
fell 0.9% in the past 24 hours to $67,030.4 01:56 ET (05:56 GMT). The token had fallen as far as $66,000 on Thursday, as the dollar rebounded sharply from one-month lows.
The token was also headed for weekly losses, as increased fears of high interest rates largely offset improved capital flows into crypto investment products.
MicroStrategy Incorporated’s (NASDAQ:) plans to buy more Bitcoin, by issuing $500 million bonds also failed to spur much price action.
Bitcoin heads for weekly losses as rate fears grow
The world’s biggest cryptocurrency was trading down 3.3% over the past seven days, as angst over high for longer U.S. interest rates dented the outlook for crypto.
While weaker-than-expected U.S. inflation data had initially dented the dollar, Bitcoin took little support from this trend after the Fed said it only saw the possibility of one interest rate cut this year, compared to prior forecasts for three cuts.
This saw traders price out a bulk of expectations for multiple rate cuts, which weighed in particular on speculative assets such as crypto. High rates bode poorly for crypto, given that they limit overall liquidity conditions, and also deter bets on risk-heavy, speculative assets.
The dollar benefited from this trade, rebounding from a one-month low
Crypto price today: Ether little enthused by ETF progress
Broader cryptocurrency prices moved in a flat-to-low range as concerns over high interest rates largely offset some positive developments towards a spot Ether ETF.
rose 0.2% to $3,515.79, and was the only altcoin trading positive. Securities and Exchange Commission Chair Gary Gensler said in a testimony before the Senate that he expected spot Ether ETFs to be fully approved by the regulator by summer.
The token rose as much as 1%, but swiftly culled most gains in late trade on Thursday.
Other altcoins largely fell. , and shed more than 2% each.
Among memecoins, and fell about 0.5% each.