Bitcoin faced another decline on Thursday as ongoing worries about high U.S. interest rates and increased regulatory scrutiny continued to weigh on the cryptocurrency market. The digital asset once again moved towards the lower end of its trading range, a trend observed over the past two months, following its descent from record highs earlier this year.
Over the past 24 hours, Bitcoin saw a 1.7% drop to $61,563.6 by 01:46 ET (05:46 GMT). This decline was exacerbated by sustained outflows from crypto investment products, notably spot Bitcoin exchange-traded funds.
Regulatory concerns remained a significant factor affecting Bitcoin’s performance. News of regulatory action against trading app Robinhood Markets Inc (NASDAQ:HOOD) by the Securities and Exchange Commission (SEC) added to existing worries. The SEC’s ongoing investigations into major players in the crypto industry, such as Coinbase Global Inc (NASDAQ:COIN), Ripple, and Ethereum, further fueled uncertainty. The postponement of a decision on spot Ethereum ETFs pending the conclusion of the Ethereum investigation highlighted regulatory uncertainty surrounding cryptocurrencies.
Additionally, the crypto market faced pressure from the release of significant token unlocks and concerns raised by recent reports. The return of deposits to customers of the now-defunct exchange FTX, coupled with allegations of artificial transactions in stablecoins, underscored the regulatory challenges confronting the crypto sector.
Beyond Bitcoin, other major cryptocurrencies experienced little respite on Thursday. Ethereum dipped by 0.3%, Solana lost 1.8%, while XRP saw a modest increase of 0.2%. Traders maintained a cautious stance amid indications from Federal Reserve officials that U.S. interest rates could remain elevated for an extended period, dampening sentiment in risk-heavy crypto markets.
Market participants awaited further insights from Fed speakers and upcoming U.S. inflation data, which are expected to provide additional cues for crypto price movements in the near term.
