Bitcoin Price Falls as Sentiment Remains Bearish Ahead of U.S. Inflation Data

Bitcoin price fell on Monday, testing key support levels as sentiment towards cryptocurrencies remained weak ahead of U.S. inflation data. The world’s largest cryptocurrency fell 0.4% in the past 24 hours to $60,910.5, nearing the crucial $60,000 support level.

The decline in Bitcoin comes as the dollar steadied, putting pressure on crypto prices as investors awaited U.S. inflation readings. Any signs of high inflation could dampen expectations of early interest rate cuts by the Federal Reserve, which would not bode well for the crypto market.

In addition to Bitcoin, other cryptocurrencies also saw losses on Monday. Ethereum fell 1.5% to $2,884.43, while Binance Coin and Cardano dropped 5.8% and 3.2% respectively. Memecoins like Dogecoin also experienced losses, with a 5.1% decline.

Despite the negative sentiment in the market, comments from Presidential candidate Donald Trump expressing support for the crypto industry provided some relief. Trump accused the Biden administration of trying to eliminate the industry and stated that his campaign would accept crypto donations.

Overall, the crypto market remains fragile as investors await the outcome of the U.S. inflation data and its impact on interest rates. The uncertainty surrounding regulatory actions and capital outflows continue to weigh on prices, making it a challenging time for cryptocurrency investors.