Investing.com – Bitcoin price drops today, reversing rally from last week's session. Due to concerns about further regulatory scrutiny of the crypto industry, most traders are wary of buying it.
Overall cryptocurrency prices are pressured by uncertainty over US interest rates. Silver rallied after comments from several Federal Reserve officials this week that signaled the central bank may keep interest rates unchanged through 2024.
The world's largest cryptocurrency continued to move in its price range over the past two months, down 1.5% in the last 24 hours to $62,523.2 by 00:44 ET (04:44 GMT). Due to its momentum, the token fell after hitting a record high in March.
Fund flow data released earlier this week showed that investments in cryptocurrencies, particularly Bitcoin, experienced strong outflows for the third week in a row. That's because the flow of exchange-traded funds that started earlier this year has begun to fade.
Regulatory concerns dampen crypto confidence
A report earlier this week showed that more than 90% of transactions in stablecoins, the backbone of the crypto market, are non-existent and do not come from real users. This raises the question of how much retail demand there really is for the crypto market.
The report also raises concerns about further regulatory action9jv stablecoin providers, particularly the giants.
In case of actual compliance with regulations. Commercial use Robinhood Markets Inc (NASDAQ: ) is facing regulatory action from the Securities and Exchange Commission over the nature of crypto tokens traded on its platform.
It has long been argued that crypto tokens are securities. And it's currently embroiled in a legal battle with issuers of XRP and crypto exchange Coinbase (NASDAQ:
The SEC is reportedly investigating Ethereum, the world's second-largest crypto token, and this week postponed its approval decision on spot trading of Ethereum ETFs for the US market. It's July.
But regulators are expected to reject the ETF's registration.
Crypto prices today: altcoins fall from interest rate perspective
Overall cryptocurrency prices are down. Also pressured by the dollar's recovery. The central bank is likely to keep interest rates unchanged this year after Federal Reserve officials said.
It fell 1.5% to $3,018.85, down 5% and 3%, respectively.
Higher long-term U.S. interest rates could be detrimental to the crypto market, as the sector generally benefits from an environment of low interest rates and high liquidity.
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