Bitcoin price dipped slightly on Friday as investor sentiment towards the crypto market was dampened by expectations of higher U.S. interest rates following the latest inflation data. Bitcoin fell by 1.3% in the past 24 hours to $64,032.8, staying within a trading range of $60,000 to $70,000 for the week.
Concerns about continued regulatory pressure on crypto surfaced this week after reports of U.S. prosecutors seeking a prison sentence for Binance founder Changpeng Zhao for violating anti-money laundering laws.
The outlook for Bitcoin dimmed as bets on rate cuts decreased, with traders pricing in rate cuts by September or the fourth quarter of 2024. The anticipation of higher U.S. interest rates made traders hesitant towards Bitcoin and other cryptocurrencies, as it reduces the appeal of volatile assets.
The broader crypto market also saw a decline following the release of key U.S. inflation data. Ethereum fell by 0.9%, while XRP dropped by 4.1% and Litecoin by 0.8%. The market is awaiting March PCE data, which is expected to impact the central bank’s stance on interest rates.
In other news, Cathie Wood’s ARK Invest sold its remaining shares in the ProShares Bitcoin Strategy ETF, valued at $6.7 million. ARK’s ARK 21Shares Bitcoin ETF has now become the firm’s largest holding, with over 2.4 million shares valued at $160.6 million.