On Tuesday, the price of Bitcoin experienced a modest 1.3% decline over the past 24 hours, settling at $67,901.9 by 01:15 ET (05:15 GMT). Similarly, Ether saw a 2% dip, reaching $3,844.48, retracting from its recent two-month highs reached over the weekend.
Focus on Regulatory Developments
Anticipation surrounding the approval of an exchange-traded fund (ETF) directly tracking Ether took a back seat, particularly as the Securities and Exchange Commission (SEC) now engages with fund managers regarding the listing of such a product. Last week, the SEC approved applications from major exchanges to list a spot Ether ETF, which spurred a notable rally in the token and broader crypto markets.
Market Sentiment Influenced by Rate Concerns
Concerns regarding sustained high U.S. interest rates remained at the forefront, especially ahead of the release of key Personal Consumption Expenditures (PCE) price index data later in the week. This reading serves as the Federal Reserve’s preferred measure of inflation and is expected to impact the central bank’s stance on interest rates.
Impact on Crypto Market
The prevailing sentiment toward cryptocurrencies and other risk-driven assets was dampened by growing apprehension that the Fed may prolong high interest rates in response to persistent inflationary pressures. This outlook has kept Bitcoin trading within a relatively narrow range established over nearly three months and has limited substantial gains in Ether.
Inflation Data Awaited
Before the release of the PCE data, inflation figures from Australia, Japan, and Germany are also anticipated this week, further shaping market dynamics.
Subdued Activity in Broader Crypto Market
Trading volumes remained subdued due to market holidays in the U.S. and the UK, resulting in little movement in broader crypto prices. Altcoins such as SOL and XRP experienced marginal gains of less than 1%, while meme tokens DOGE and SHIB traded within a flat-to-low range.
