Latest Articles

How much gold is deducted while selling?

Selling gold can be a lucrative endeavor, whether you're looking to cash in on investment holdings, liquidate jewelry, or divest assets. However, it's essential...
HomeCryptoBitcoin Price Rises to $64k Amid Dollar Pressure and Rate Fears
Advertisements

Bitcoin Price Rises to $64k Amid Dollar Pressure and Rate Fears

Bitcoin’s price saw a marginal rise on Wednesday, maintaining its position within a trading range established over the past month. This stability comes amidst fragile risk sentiment due to expectations of higher U.S. interest rates.

Advertisements

The recent strength of the dollar has put pressure on crypto markets, particularly as robust U.S. inflation and retail sales data have reduced the likelihood of the Federal Reserve cutting interest rates. Fed Chair Jerome Powell reiterated this sentiment on Tuesday, further solidifying expectations of prolonged higher interest rates.

Advertisements

The ongoing geopolitical tensions in the Middle East have also contributed to weak risk appetite among traders, prompting many to remain on the sidelines. Consequently, safe-haven demand and rate expectations have pushed the dollar to its highest level in over five months.

Advertisements

Bitcoin experienced a 2.9% increase in the past 24 hours, reaching $64,269.5 by 01:15 ET (05:15 GMT). Despite this rise, the token has remained within the range of $60,000 to $70,000 for the past month, following its record high above $73,000 in March.

The focus now shifts to the upcoming halving event, expected to occur with the generation of block no. 840,000 on the Bitcoin blockchain. This event will halve the rate at which new Bitcoin is mined, potentially reinforcing the narrative of the token’s scarcity increasing its value.

While traders anticipate some gains from the halving, past events have typically resulted in limited near-term increases.

Powell’s comments about sticky inflation have led traders to scale back expectations for an interest rate cut in June. Market indicators now suggest a less than 18% chance of a 25 basis point cut in June, with nearly an 80% probability of the Fed maintaining steady rates, according to the CME Fedwatch tool.

The prospect of higher-for-longer interest rates poses challenges for crypto markets, which typically thrive in a low-rate, high-liquidity environment.

Despite Bitcoin’s rise, broader cryptocurrency prices also saw gains, with Ethereum up 2.8% at $3,110.40. Solana added 7%, while XRP traded sideways. However, these tokens have been impacted by recent losses, especially in light of expectations of prolonged higher U.S. interest rates and geopolitical tensions between Iran and Israel.

Advertisements
Advertisements