Bitcoin fell on Tuesday, continuing to reverse its weekend recovery, amid growing concerns about rising US interest rates and continued institutional selling, which kept most cryptocurrencies under constant pressure.
Optimism related to peace talks between the United States and Iran also faded, as investors awaited further dialogue on a comprehensive peace agreement.
Bitcoin fell 1.2% to $63,468.00 by 8:34 AM.
Cryptocurrency markets were affected by the Federal Reserve's hawkish signals last week, after a majority of monetary policymakers leaned toward raising interest rates this year. Higher interest rates are generally negative for speculative, non-yielding assets like cryptocurrencies.
Bitcoin ETF outflows continue after six weeks of selling.
Institutional investors continued selling off spot exchange-traded funds this week, following six consecutive weeks of massive outflows in the sector.
Investors have withdrawn nearly $160,000,000 from Bitcoin spot exchange-traded funds so far this week, according to data from SoSoValue.
Despite the slowdown in the pace of outflows in recent weeks, they still indicate that demand for cryptocurrencies and their products remains very fragile.
Bitcoin has found little relief among retail investors. The Coinbase Premium Index, which compares Bitcoin's price on Coinbase—the largest US exchange—to the global premium, shows Bitcoin continuing to trade at a significant discount.
This trend revealed that US demand from individual investors for the world's largest cryptocurrency has become very weak in the wake of the sharp sell-off this year.
Cryptocurrency prices today: Altcoins decline as Bitcoin falls, and all eyes are on economic data.
Prices of the broader cryptocurrency market declined, following Bitcoin's lead, amid heightened caution ahead of several key economic data releases scheduled for the coming days.
Ether, the world's second-largest cryptocurrency, fell 1.9% to $1,703.18, while XRP declined 1.5%.
Solana, Cardano and BNB all declined by between 1.1% and 4.6%.
In the meme currency market, Dogecoin fell by 3.1%, while $TRUMP declined by 5.4%.
Markets are awaiting the release of the US Purchasing Managers' Index (PMI) data for June, which is scheduled to be released later on Tuesday.
The release of the Personal Consumption Expenditures (PCE) price index for May is also expected on Wednesday and will be closely watched for clues about inflation and spending. This index is the Federal Reserve's preferred measure of inflation and comes amid growing expectations that the central bank will raise interest rates later this year.
