Investing.com– Bitcoin price fell on Thursday, seeing little relief amid continued pressure from concerns over high U.S. interest rates and increased regulatory scrutiny against some of the crypto industry’s biggest players.
The token once again drifted towards the lower end of a trading range seen through most of the last two months. Bitcoin had also slid as far as $57,000 in late-April, entering a bear market from record highs hit in early-March.
fell 1.7% in the past 24 hours to $61,563.6 by 01:46 ET (05:46 GMT). The token was also reeling from sustained outflows from crypto investment products, particuarly spot Bitcoin exchange-traded funds.
Regulatory fears continue to chip away at Bitcoin
Concerns over increased U.S. regulatory scrutiny against crypto remained in play, after trading app Robinhood Markets Inc (NASDAQ:) said it was facing regulatory action from the Securities and Exchange Commission (SEC) over the trade of crypto tokens on its platform.
Potential action against Robinhood could add to the current cases the SEC already has running against exchange Coinbase Global Inc (NASDAQ:) and XRP issuer , both of which are expected to determine the nature of cryptocurrencies under U.S. law.
The SEC was also reportedly investigating world no.2 token over its nature as a security. The regulator postponed a decision on approving spot Ethereum ETFs this week, and appears unlikely to approve the ETFs until its investigation is concluded.
Crypto markets were also reportedly facing pressure from the release of several major token unlocks, either from staking or from locked-in issuances to early investors.
remove ads
.
Recent reports showed that customers of the now-defunct exchange FTX will receive their deposits back, with interest, although it was unclear whether the payments will be in cash or crypto.
A report released earlier this week alleged that over 90% of all transactions in stablecoins were artificial, raising concerns over more regulatory scrutiny against the sector, which is a key pillar of the crypto industry.
Crypto price today: altcoins tread water, more rate cues awaited
Beyond Bitcoin, other major crypto tokens also saw little relief on Thursday. Ethereum fell 0.3% and lost 1.8%, while rose 0.2%.
Traders remained largely biased to the dollar after a string of Federal Reserve officials warned that U.S. interest rates were likely to remain high for longer in 2024- a scenario that bodes poorly for risk-heavy crypto markets.
Focus is now on upcoming comments from more Fed speakers, as well as key U.S. due next week.
