Bitcoin Price Falls as U.S. Rate Fears Overshadow Ether ETF Approval

Bitcoin price fell on Friday, retreating from recent highs as concerns over high U.S. interest rates overshadowed the approval of exchange-traded funds tracking Ether. Despite still holding onto some gains for the week, Bitcoin slipped back into its familiar trading range of $60,000 to $70,000.

Ether, the second-largest cryptocurrency, also saw a dip in price as profit-taking took hold. However, the token was up 21% over the past week, driven by the approval of spot Ether ETFs by the Securities and Exchange Commission. This development, which involved major exchanges like Nasdaq and CBOE, marked progress towards the eventual approval of a spot ETF for trade.

The approval of Ether ETFs had initially boosted prices, but fears of high U.S. interest rates dampened optimism in the crypto market. With the Federal Reserve signaling a potential increase in rates to combat inflation, traders began to price out expectations for rate cuts this year. This shift in sentiment weighed on crypto prices, with most tokens experiencing a decline.

Despite the setback, the crypto market remains volatile and subject to various external factors. As investors navigate through uncertain economic conditions, the future trajectory of cryptocurrencies like Bitcoin and Ether remains uncertain.