Bitcoin witnessed a minor retreat on Friday, relinquishing some of the gains accrued in the past two days, as cautionary statements from Federal Reserve officials tempered expectations for imminent interest rate cuts.
The world’s largest cryptocurrency remained firmly ensconced within a narrow trading range of $60,000 to $70,000, a pattern that has persisted over the last two months due to subdued capital flows and subdued risk appetite.
As of 01:30 ET (05:30 GMT), Bitcoin registered a 0.5% decline, settling at $65,473.3.
Despite its range-bound trading, Bitcoin posted robust gains throughout the week, particularly noteworthy given its recent dip to $60,000 levels.
The cryptocurrency experienced an approximate 8% increase from its lows last Friday, buoyed in part by dollar weakness amidst indications of moderating U.S. inflation.
Traders responded to softer consumer price index data by increasingly factoring in the likelihood of a Federal Reserve interest rate cut in September, a scenario conducive to speculative assets like Bitcoin and other cryptocurrencies.
However, the optimism waned somewhat on Friday following warnings from several Fed officials, who emphasized the need for sustained evidence of declining inflation before contemplating any policy adjustments.
Their remarks triggered a swift recovery in the dollar and put a halt to the rally in most risk-oriented assets.
Beyond concerns surrounding U.S. interest rates, the crypto market remained constrained by apprehensions of potential regulatory measures targeting the industry.
Altcoins Retreat Amid Uncertainty:
In tandem with Bitcoin’s subdued performance, major altcoins experienced retracements on Friday, trailing behind the leading cryptocurrency over the past week amidst subdued sentiment towards the crypto sector.
Ethereum, the second-largest token, dipped by 2.1%, while Solana and XRP exhibited marginal movements.
Meme tokens, mirroring the downturn in their equity counterparts, witnessed declines as the recent rally in meme stocks like GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) lost momentum in recent sessions.
Dogecoin recorded a 3.6% decrease on Friday, while Shiba Inu saw a decline of 2.8%.
Amidst ongoing uncertainties surrounding U.S. interest rates and regulatory developments, market participants remain watchful for potential shifts in sentiment and corresponding price movements across the cryptocurrency landscape.
