Bitcoin and Ethereum traders are focused on the Federal Reserve’s next policy move following yesterday’s US inflation reading.
Inflation in the US fell to 4.0% in May, the lowest since March 2021 and slightly below market expectations of 4.1%.
Bitcoin slipped by 0.7% to US$25,905 while Ethereum also fell, losing 0.4% to US$1,741.
According to Naeem Aslam, chief investment officer at Zaye Capital Markets: “Traders are now focused on the Fed’s next policy move.”
“Traders believe that the price could experience some relief rally as the dollar index may take a nose dive as the Fed leaves the interest rate where it is,” he said.
Aslam believes one or more inflation readings like the one yesterday are likely to cause the dollar index to crash, which could benefit the price of Bitcoin.
“In addition, traders are also keeping a close eye on Bitcoin’s correlation with riskier assets, and this is because if the Fed pauses interest rates, traders are likely to become bolder in backing more risk," he said.
Among some of the altcoins, Solana was down 1.69% to US$15.10, Polygon was up 0.5% to US$0.6476 and Litecoin lost 0.9% to US$77.61.