Bitcoin Dips Amid Fed Rate Jitters
Bitcoin extended its decline on Wednesday, dropping 0.8% to $67,372.3 by 01:34 ET (05:34 GMT), after hitting a low of $66,000 on Tuesday. Anticipation of the Federal Reserve's meeting and key inflation data kept risk appetite muted.
**Volatile Sessions:** Bitcoin has seen wild swings, rising as high as $72,000 recently. High rates reduce the appeal of risk-driven assets like crypto, leading traders to shift towards safer assets like the dollar.
**Crypto Inflows:** Despite $2 billion worth of inflows into crypto investment products in early June, prices did not reflect this.
**Fed and Inflation:** The Fed is expected to keep rates unchanged, but may present a hawkish outlook due to persistent inflation and a strong labor market. Upcoming CPI data is expected to show inflation remained sticky in May.
**Altcoins Retreat:** Major altcoins fell on Wednesday. Ether dropped over 1% to $3,511.91, while ADA, XRP, and SOL fell between 1.2% and 2.5%. Meme tokens DOGE and SHIB declined by 1.5% and 2.4%, respectively, reflecting cooling sentiment in the sector.
