Bitcoin price today: nears $71k as rate cut hopes build

June 05, 2024 04:10 PM AEST | By Investing

Bitcoin price today: nears $71k as rate cut hopes build

Bitcoin breaks out of trading range, close to record highs

The world’s biggest cryptocurrency broke out of a $60,000 to $70,000 trading range seen since mid-March, and was now trading about $3,000 away from a new record high.

A mix of profit-taking, concerns over high interest rates and cooling optimism over Bitcoin ETFs had kept Bitcoin in a trading range after the token surged to record highs in early-March.

But interest in crypto now appeared to be picking up, especially with the prospect of lower interest rates this year.

Risk-heavy assets such as crypto usually benefit from lower interest rates, given that increased liquidity makes for more speculative trading.

Crypto price today: altcoins advance with rate cues in progress

Broader altcoin prices also advanced on Wednesday, as weak U.S. economic data spruced up expectations of eventual interest rate cuts by the Federal Reserve.

World no. 2 token Ether rose 0.7%, while SOL, XRP and ADA rose between 0.9% and 5%.

Among meme tokens, SHIB surged 8%, while DOGE added 3.1%.

Expectations of a rate cut in September rose after softer-than-expected job openings data on Tuesday.

The reading was preceded by weak purchasing managers index data, as well as a downward revision in U.S. gross domestic product for the first quarter.

But while the readings ramped up bets on a September rate cut, focus this week was still on upcoming nonfarm payrolls data for more definitive cues on the labor market and interest rates.

This article first appeared in Investing.com

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