Bitcoin Price Falls Slightly as Traders Await U.S. Interest Rate Cues and SEC ETF Decision
The cryptocurrency market saw some turbulence on Wednesday as Bitcoin prices fell slightly amidst anticipation of more cues on U.S. interest rates. Traders were seen locking in gains from a recent rally driven by optimism over a potential spot Ether exchange-traded fund.
Ether, the world’s second-largest cryptocurrency, steadied at an over two-month high following reports of progress towards the approval of spot ETFs by the Securities and Exchange Commission (SEC). The regulator is expected to make a crucial decision on the ETFs later this week, sparking interest and caution among traders.
Despite the positive news on the Ether front, warnings about sticky U.S. inflation and the likelihood of high interest rates for a longer period kept traders cautious towards the crypto markets. This sentiment also contributed to Bitcoin’s slight decline, with the token falling 1.5% over the past 24 hours to $69,880.1.
On the other hand, Ether saw a 3% rise in the past 24 hours, reaching $3,755.37 and nearing its highest level since early March. Media reports indicated that the SEC had requested exchanges to refine their filings for spot Ether ETFs, hinting at a potential approval in the near future.
Analysts noted that the SEC’s move signaled a greater likelihood of an eventual approval of a spot Ether ETF, which could trigger a rally in crypto prices similar to the one seen after the approval of spot Bitcoin ETFs earlier this year.
However, Bitcoin struggled to hold onto its recent gains, with the token fluctuating within a $60,000 to $70,000 trading range. Concerns over U.S. interest rates continued to weigh on sentiment, as several Fed officials emphasized the need for more confidence in inflation before considering rate cuts.
As altcoin prices cooled off alongside Bitcoin’s retreat, traders remained focused on Ether within the altcoin complex. The resilience in the crypto market was evident, with some altcoins like Dogecoin and Shiba Inu showing modest gains despite the overall market trend.
Overall, the crypto market remains on edge as traders await more clarity on U.S. interest rates and the SEC’s decision on spot ETFs, which could significantly impact the future direction of cryptocurrency prices.