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Bitcoin price today: down to $67k after rate cut updates

Published 06/13/2024, 02:21 AM
Updated 06/13/2024, 08:37 AM
© Reuters.

Investing.com-- Bitcoin price slipped on Thursday in a volatile session as a forecast from the Federal Reserve of high for longer interest rates largely overshadowed some signs of cooling near-term inflation.

The world’s biggest cryptocurrency fell 2.1% in the past 24 hours to $67,850.9 by 08:30 ET (12:30 GMT). The token clocked wild swings this week, rising as far as $70,000 before falling sharply. 

Bitcoin rangebound as Fed forecasts only one rate cut this year 

Traders remained largely averse to Bitcoin and broader cryptocurrencies in the face of high-for-longer U.S. interest rates.

While the Fed kept rates unchanged on Wednesday, as expected, Chair Jerome Powell said the central bank now saw the possibility of only one rate cut this year, compared to prior expectations of three cuts.

Several policymakers also called for no rate cuts this year, stating that more progress needed to be made in bringing down inflation. The Fed also hiked its inflation forecast for the year. 

The Fed’s comments came after data earlier on Wednesday showed U.S. consumer inflation eased slightly more than expected in May. While Bitcoin saw some gains after the inflation reading, it lost ground after the Fed’s comments.

High rates bode poorly for speculative assets such as crypto currencies, given that they limit the amount of liquidity available for investing in the sector. While recent capital flows data showed institutional investors were still pouring in some money into crypto, this was barely reflected in token prices. 

Focus is now on producer price index inflation data for more cues on U.S. inflation. The reading is due later on Thursday.

Crypto price today: Altcoins drift lower amid rate jitters

The prospect of high for longer U.S. interest rates also weighed on broader cryptocurrency prices. 

World no.2 token Ether slid 3.3% to $3,516.65, giving up even more of its gains made in the prior month.

Solana and XRP fell 2.1% and 0.1%, respectively, while Cardano climbed 0.5%, though all three coins were trading down for the week.

Among meme tokens, SHIB dipped 2.4% while DOGE rose 2.5%. But sentiment towards the two was largely cooling in tandem with diminishing interest in meme stocks on Wall Street.

GameStop Corp (NYSE:GME) lost even more ground on Wednesday and wiped out most of a rally seen in late-May. 

MicroStrategy offers convertible notes to buy more Bitcoin

Business intelligence form and largest corporate holder of Bitcoin, MicroStrategy, said on Thursday it will offer $500 million in convertible senior notes due 2032.

The proceeds will be used to purchase additional Bitcoin and for other corporate purposes. The offering is contingent on market conditions, with no guaranteed timing or terms.

"MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of the notes," the company wrote in the announcement.

MSTR shares were down 1.4% in premarket trading.

Starting June 20, 2029, MicroStrategy may redeem all or part of the notes for cash, subject to certain conditions. The private offering will be available to individuals qualified as institutional buyers under Rule 144A of the Securities Act of 1933.

Currently, MicroStrategy holds 214,400 BTC, valued at over $14 billion, making it the largest public-listed Bitcoin holder.

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