Bitcoin Price Falls. Cooling Inflation Is Bad for Crypto.
Bitcoin’s price fell on Friday as news of cooling inflation inspired investors to dump their cryptocurrencies and rotate into other assets.
The large-cap token was down 0.4% over 24 hours to $57,150 in early-morning trading. Excitement about the launch of several exchange-traded funds helped it spike to a record high of about $74,000 in mid-March, but it has slipped 14.4% over the past three months.
Bitcoin’s…
Bitcoin
’s
price fell on Friday as news of cooling inflation inspired investors to dump their cryptocurrencies and rotate into other assets.
The large-cap token was down 0.4% over 24 hours to $57,150 in early-morning trading. Excitement about the launch of several exchange-traded funds helped it spike to a record high of about $74,000 in mid-March, but it has slipped 14.4% over the past three months.
Bitcoin’s small losses came after June inflation data came in cooler-than-expected on Thursday, triggering a market rotation away from high-flying sectors like tech and into laggards like the
index, which tracks small-cap stocks.
“An attempt to strengthen the market’s offensive on news about inflation in the U.S. attracted new sellers, which this time can easily be linked to the similar dynamics of the Nasdaq index, with which crypto has the closest correlation,” Alex Kuptsikevich, an analyst for the foreign exchange broker FxPro, said.
Other cryptos also felt the pain.
Ether
,
which is the second-largest crypto in terms of market capitalization, fell 2.5% to $3,066. Altcoin
was down 5.6% to $135, but
climbed 1.3% to 40 cents.
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Dogecoin
,
the token touted by Tesla CEO Elon Musk, fell 3.5% to 11 cents.
Crypto and blockchain stocks had a better time of it in the premarket, with
up 1.3% and
up 0.4%.
Write to George Glover at [email protected]
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