Bitcoin price today: down to $61k amid regulatory jitters, inflation angst

Bitcoin prices fell on Tuesday, continuing their recent decline due to a mix of regulatory concerns, particularly from U.S. actions and German government sales, along with broader risk aversion, putting pressure on cryptocurrency prices.

The world’s largest cryptocurrency dropped 2.4% in the past 24 hours to $61,332.0 by 01:22 ET (05:22 GMT), having reached a low of $59,215 during overnight trading.

Regulatory Fears and Interest Rates Drive Crypto Selling

Cryptocurrencies faced selling pressure driven by a range of regulatory factors. Concerns over U.S. interest rates further exacerbated the situation, pushing broader crypto prices lower. Crypto investment products experienced two consecutive weeks of significant capital outflows.

Impact of German Bitcoin Sales and Inflation Concerns

Bitcoin has faced significant losses over the past week amid reports that the German government was selling Bitcoin seized from a piracy website. Reports indicated that German authorities had sold about 3,000 of the 50,000 confiscated tokens.

Additionally, the U.S. Commodity Futures Trading Commission’s investigation into market maker Jump Trading over its crypto trading activities added to the negative sentiment. Jump President Kanav Kariya’s departure from the firm further fueled concerns.

These developments contributed to a broader risk-off sentiment in crypto markets, with traders shifting towards the dollar ahead of key U.S. inflation data expected on Friday. The PCE price index, the Federal Reserve’s preferred inflation gauge, is anticipated to provide more insights on interest rates this week.

Sustained Outflows from Crypto Investment Products

Data from digital asset manager CoinShares revealed on Monday that crypto investment products saw outflows totaling about $584 million, with the majority directed towards U.S. Bitcoin exchange-traded funds. Bitcoin products experienced outflows of $630 million, while altcoin products saw minor inflows as investors viewed recent price declines as buying opportunities.

Mixed Performance of Altcoins

Broader crypto prices saw a rebound on Tuesday, with major altcoins recovering from steep losses sustained over the past week. Ether, the second-largest token, rose 0.2% to $3,377.80, despite giving up most of its gains from the excitement over a potential spot Ether ETF.

ADA, SOL, and XRP increased between 0.3% and 10%, with Solana leading the gains among its peers, albeit with thin trading volumes.

Among meme tokens, SHIB and DOGE each added about 2%.