May 9 2024: Bitcoin faced further decline on Thursday, grappling with persistent pressures from rising U.S. interest rates and heightened regulatory scrutiny across the cryptocurrency sector.
The token retreated by 1.7% in the past 24 hours, settling at $61,563.6 by 01:46 ET (05:46 GMT). This downward trend aligns with Bitcoin’s recent struggles, slipping towards the lower end of its trading range observed over the past two months, after hitting record highs in early-March.
Continued outflows from crypto investment products, especially spot Bitcoin exchange-traded funds, added to the downward pressure on Bitcoin.
Regulatory concerns loom large, with trading platform Robinhood Markets Inc (NASDAQ:HOOD) facing regulatory action from the Securities and Exchange Commission (SEC) over crypto token trading. This adds to ongoing regulatory battles involving Coinbase Global Inc (NASDAQ:COIN) and XRP issuer Ripple, as regulators seek clarity on cryptocurrency regulations.
The SEC’s investigation into Ethereum’s classification as a security has also impacted market sentiment, delaying the approval of spot Ethereum ETFs until the investigation concludes.
Moreover, reports of artificial transactions comprising over 90% of stablecoin transactions have raised fears of increased regulatory scrutiny on stablecoins, a significant component of the crypto industry.
Altcoins mirrored Bitcoin’s downturn, with Ethereum slipping by 0.3% and Solana by 1.8%, while XRP managed a 0.2% increase.
Investors remain cautious amid signals from Federal Reserve officials indicating prolonged high U.S. interest rates in 2024, which may unfavorably affect risk-sensitive crypto markets. Attention is now on upcoming Fed speeches and key U.S. inflation data expected next week for further market cues.
