Bitcoin’s Price Falls Amid Lack of Positive Cues, Speculation on U.S. Interest Rates
Bitcoin’s price took a hit on Friday as the crypto market lacked major positive triggers, but losses were limited by ongoing speculation about potential U.S. interest rate cuts.
Despite some recovery from last week’s losses, Bitcoin remained mostly within a trading range seen throughout the year. Retail interest in crypto assets waned and excitement over spot-Bitcoin exchange-traded funds faded.
Uncertainty over cryptocurrency regulations also contributed to the downward pressure, as Democratic presidential candidate Kamala Harris gained momentum following a fiery debate with Republican nominee Donald Trump.
Bitcoin dropped 0.5% to $57,891.5 by 01:22 ET (05:22 GMT).
Bitcoin Sees Weekly Gain, But Stays in $50-$60k Range
The leading cryptocurrency recorded a 6.9% increase this week, with much of the gains attributed to buying opportunities after significant losses in the previous week.
Bitcoin continued to trade within the $50,000 to $60,000 range established earlier in the year, struggling to find a clear direction after reaching new all-time highs in March.
Data from CryptoQuant showed Bitcoin further distancing itself from gold, which hit a new peak on Friday due to increased safe haven demand and expectations of lower interest rates.
Despite the potential for rate cuts by the Federal Reserve, Bitcoin has not seen significant support from other risk-driven markets.
Trump Refuses Future Debates with Harris
Pro-crypto candidate Trump faced a setback this week as he lost ground to Harris following a debate where she was perceived as the winner.
Trump announced on his Truth.Social platform that he would not participate in any more debates with Harris, resorting to personal attacks on his opponents and claiming victory in the recent debate.
Trump’s declining popularity had a negative impact on crypto markets, given his favorable stance towards the sector. Harris, on the other hand, is expected to continue the Biden administration’s cautious approach to cryptocurrencies.
Crypto Prices Today: Altcoins React to Rate Cut Speculation
Other cryptocurrencies experienced mixed movements, largely influenced by Bitcoin’s minor losses.
Ethereum declined by 0.3% to $2,350.61, while Ripple, Litecoin, and Bitcoin Cash traded flat to slightly lower. Dogecoin, however, surged by 6%.
Among meme coins, Shiba Inu rose by 0.7%.
All eyes are on an upcoming Federal Reserve meeting next week, where a rate cut is anticipated. However, markets are divided on whether the cut will be 25 or 50 basis points.