Investing.com — Bitcoin prices fell on Friday in the face of growing pressure from fears of further regulatory action, but also weighed down by better-than-expected U.S. inflation data amid bets on a small interest rate cut. It became.
The world’s largest cryptocurrency briefly fell below a key support level on Thursday, but managed to recover above $60,000, albeit briefly. The broader cryptocurrency market also mostly slumped.
It fell 0.5% to $60,645.7 by 01:59 ET (05:59 GMT). This week, the token traded down 2.3%.
SEC lawsuit against Cumberland rattles cryptocurrencies
The U.S. Securities and Exchange Commission on Thursday charged cryptocurrency market maker Cumberland DRW with operating as an unregistered dealer in more than $2 billion in crypto assets since 2018.
The move is the latest in a long line of SEC crackdowns on what it considers multiple securities law violations in the crypto industry.
The agency is currently suing stock exchanges Kraken and Coinbase (NASDAQ:) for alleged violations of securities laws, as crypto tokens are subject to securities laws.
The case against Cumberland has raised concerns about further regulatory action against the cryptocurrency industry.
Recent speculation surrounding a large token sale by the US government (approximately 64,000 Bitcoins seized from the Silk Road website) also caused crypto prices to fall.
On the regulatory front, markets are now focused squarely on the 2024 presidential election. There, pro-cryptocurrency Republican candidate Donald Trump faces a close race against Democratic candidate Kamala Harris. Harris is expected to continue the Biden administration’s crackdown on cryptocurrencies.
Hot CPI data sours sentiment
Better-than-expected inflation data released on Thursday also dampened risk appetite, adding to expectations that the Federal Reserve will slow the pace of rate cuts.
Relatively high long-term interest rates are a bad omen for speculative assets such as crypto assets.
The dollar soared to a two-month high this week, further weighing on crypto valuations.
Still, the market maintained that the Fed would cut interest rates by at least 25 basis points in November. Some moderate views on the labor market further promoted this idea.
Cryptocurrency prices today: Altcoins are sluggish, headed for weekly declines
Amid broader cryptocurrency prices, most major altcoins fell on Friday, with modest declines expected for the week.
The world’s second-largest cryptocurrency stabilized at $2,406.02. , which also rose slightly.
Meme tokens fell 0.5%.
