Bitcoin Drops To One-Week Low As Traders Await CPI, Fed Decision
Bitcoin wobbled on Tuesday in a sign of trader nerves ahead of US inflation data and the Federal Reserve’s monetary-policy decision.
(Bloomberg) -- Bitcoin wobbled on Tuesday in a sign of trader nerves ahead of US inflation data and the Federal Reserve’s monetary-policy decision.
The largest digital asset slid as much as 2.5% to a one-week low before changing hands at $68,000 as of 10:42 a.m. in Singapore. Smaller tokens such as Ether and meme-crowd favorite Dogecoin also nursed losses.
Bitcoin hit a record of $73,798 in March, lifted by inflows into dedicated US exchange-traded funds, but has struggled for new highs since then. The inflation data and Fed outlook on Wednesday may cement fears that interest rates will stay higher for longer, a tough backdrop for speculative fare like crypto.
“No news is bad news in crypto,” said Anand Gomes, co-founder of Paradigm, a derivatives platform. “The market is like a junkie that constantly needs bullish news to stay up. So when there is none, the path of least resistance is lower.”
--With assistance from Ryan Weeks.
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