May 23 2024: Bitcoin’s price remained largely flat on Thursday, hovering around $69,418.9 as of 01:21 ET (05:21 GMT). This stability comes after a recent rally in cryptocurrencies was undermined by renewed fears of sustained high U.S. interest rates. Strong overnight gains in the dollar further pressured crypto prices across the board.
Key Points
Bitcoin: Down 0.3% in the past 24 hours, Bitcoin has settled back into a trading range seen for most of the past two months, following a brief breakout earlier this week.
Ether: The world’s second-largest cryptocurrency, Ether, hovered around two-month highs hit earlier this week, retaining gains from the potential approval of a spot Ether exchange-traded fund (ETF). Ether rose slightly to $3,776.69.
Spot Ether ETF Dominates Market Focus
The Securities and Exchange Commission (SEC) is expected to decide on applications for a spot Ether ETF from VanEck, ARK Investment Management, and seven other issuers later on Thursday or Friday. Reports earlier in the week indicated that the SEC had asked certain exchanges to fine-tune their filings for spot Ether ETFs, which sparked a rally in Ether. While this marks progress, it does not guarantee approval.
Rate Jitters Intensify, Dent Prices
The broader cryptocurrency market unwound a significant portion of gains made earlier this week due to concerns over high U.S. interest rates. The minutes from the Fed’s late-April meeting revealed increasing concerns among policymakers about persistent inflation. Some members even indicated they were prepared to hike rates further to control inflation.
A slew of Fed officials have warned this week that the central bank has little confidence that inflation is easing steadily towards its 2% annual target. While the likelihood of another rate hike is low, any persistent inflation is likely to delay the Fed’s plans to begin reducing rates. High rates typically bode poorly for crypto markets, which thrive in low-rate, high-liquidity environments.
Altcoin Prices Mostly Fall
SOL: Fell 2.2%
XRP: Lost 1.2%
SHIB: Dropped 0.7%
DOGE: Decreased 0.8%
In summary, while Bitcoin and Ether hold relatively steady, the broader cryptocurrency market faces downward pressure due to fears of prolonged high U.S. interest rates and the anticipation of the SEC’s decision on spot Ether ETFs.
