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HomeLatestBitcoin Price Holds Below $62k as Investors Await CPI Data
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Bitcoin Price Holds Below $62k as Investors Await CPI Data

Summary: Bitcoin’s price remained relatively stagnant on Wednesday, displaying minimal movement despite a weakening dollar. Investors adopted a cautious stance ahead of the release of crucial U.S. consumer inflation data. Despite a slight decline in the dollar following remarks by Federal Reserve Chair Jerome Powell, indicating no immediate interest rate hikes, Bitcoin struggled to find positive momentum. Concerns about inflation persist, with recent data suggesting potential upward pressure on consumer prices. Additionally, reduced capital inflows into Bitcoin and crypto investment products, coupled with regulatory uncertainties, continued to dampen market sentiment.

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Key Points:

Bitcoin Price: Bitcoin experienced a marginal 0.9% decline over the past 24 hours, trading at $61,974.9 by 01:28 ET (05:28 GMT).

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Market Sentiment: Despite a dip in the dollar stemming from Powell’s remarks on monetary policy, Bitcoin failed to rally. Powell’s acknowledgment of uncertain inflationary trends further added to investor apprehension.

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Inflation Data: Anticipation surrounded the release of U.S. consumer inflation data, following a hotter-than-expected producer price index for April. The outcome of the CPI reading could influence market direction.

Hong Kong ETF Outflows: Three Hong Kong-based spot Bitcoin and Ethereum exchange-traded funds witnessed significant outflows, totaling nearly $40 million on Monday. The reasons behind the outflows remained unclear, coinciding with souring sentiment towards Hong Kong and Chinese markets amid trade tensions and economic indicators.

Crypto Market Dynamics: Altcoins, including Ethereum, Solana, and XRP, saw declines as investors turned risk-averse before the CPI data release. Meme tokens like Dogecoin and Shiba Inu also experienced losses amid broader market uncertainty.

Market Outlook: Persistent U.S. inflation concerns may prolong high interest rates, presenting a challenging environment for crypto markets accustomed to low-rate, high-liquidity conditions.

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