Bitcoin‘s price held steady on Thursday following sharp declines earlier in the week, as traders awaited key economic data that could influence the next movement in the cryptocurrency market.
The world’s largest cryptocurrency experienced significant drops on Tuesday and Wednesday, triggered by the transfer of nearly $2 billion in tokens between wallets at a major crypto exchange. This movement raised concerns among traders about a potential large-scale sell-off.
Despite recent volatility, Bitcoin has remained within a trading range that has characterized much of this year, reflecting signs of diminishing capital inflows into the crypto market. As of 01:19 ET (05:19 GMT), Bitcoin stabilized at $59,339.3, after dipping as low as $58,000 earlier in the week.
A decline in the stock price of market leader NVIDIA Corporation (NASDAQ: NVDA) also dampened risk appetite, contributing to the struggle for crypto prices to gain upward momentum.
Inflation and GDP Data Awaited for Interest Rate Clues
Optimism about lower U.S. interest rates has kept crypto markets from sinking to recent lows, as lower rates generally create a more favorable environment for speculative assets like cryptocurrencies.
Key U.S. economic data due later this week is expected to shape the outlook for interest rates. On Thursday, a revised reading of second-quarter gross domestic product (GDP) data is set to be released, following a previous report that highlighted the resilience of the U.S. economy.
On Friday, the market will focus on the Personal Consumption Expenditures (PCE) price index data, the Federal Reserve’s preferred inflation measure, which could provide further insights into potential rate changes.
Market expectations are currently split between a 25 or 50 basis point interest rate cut in September, with weaker economic data likely to increase the chances of a larger reduction. However, the extent to which cryptocurrencies will benefit from lower rates remains uncertain. A recent report by blockchain research firm Glass Node revealed that speculative interest, particularly among retail investors, has largely diminished.
Additionally, data on capital flows indicates waning enthusiasm among institutional investors towards cryptocurrencies, as initial optimism surrounding the launch of spot Bitcoin exchange-traded funds earlier this year has faded.
Crypto Prices Today: Altcoins Show Modest Gains, Remain Rangebound
In the broader crypto market, major altcoins saw some gains but struggled to recover from losses incurred earlier in the week.
Ethereum, the second-largest cryptocurrency, rose 3% to $2,537.46, while XRP and ADA each gained about 0.5%. However, SOL lagged behind with a 2.4% decline, and MATIC extended its losses, sliding 4.6%.
Among meme tokens, DOGE showed a modest increase of 1.5%. Despite these gains, the overall market remained within a limited trading range, reflecting ongoing uncertainty among investors.
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