Markets
Bitcoin price drops below $66,000, prolonging the cryptocurrency’s decline
Bitcoin’s price fell below $66,000 in Monday morning trading, extending last week’s declines as a slew of new U.S. economic data put the brakes on its previous streak.
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The popular cryptocurrency traded at around $65,600 on Monday, down nearly 2% in the past 24 hours at the start of the week. Over the past seven days, Bitcoin has fallen about 6%.
After approaching all-time highs earlier this month, when traded above $71,000, Bitcoin and the cryptocurrency market as a whole have largely cooled and continued to post steady declines. It it fell below $67,000 last week ahead of the latest consumer price index and the Federal Reserve’s interest rate decision, which both landed on Wednesday – and briefly dipped below $65,000 over the weekend.
The key measure of inflation fell to 3.3% year-on-year. Additionally, Fed officials voted to keep the benchmark federal funds rate stable between 5.25% and 5.5% and projected only one rate cut for 2024. Dow initially rose more than 350 points and the S&P 500 hit a new all-time high late Wednesday following the news, but those gains were later erased.
The declines have seemingly ended hopes of hitting all-time highs for the largest cryptocurrency, at least for now. And other cryptocurrencies followed suit, sinking along with Bitcoin.
Ether, the second-largest cryptocurrency by market capitalization, also fell 1.45% on Monday to settle around $3,500. Other major blockchains, including Solana, Dogecoin and Cardano, fell between 2% and 3% on Tuesday morning, as the cryptocurrency market continues its steady decline.
Overall, the global cryptocurrency market capitalization fell 1.6% over the past day to $2.39 trillion, according to CoinMarketCap.
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— Vinamrata Chaturvedi contributed to this article.