Bitcoin price today: down to $62k amid dollar pressure, inflation jitters

Investing.com-- Bitcoin price fell on Monday, extending a deep decline from the past week as concerns over U.S. interest rates and anticipation of key inflation data kept traders largely biased towards the dollar.

Broader cryptocurrency prices were also pressured by a strong dollar, as the greenback came close to a two-month high following robust U.S. purchasing managers index data.

Bitcoin fell 2.4% in the past 24 hours to $62,850.7 by 00:59 ET (04:59 GMT). 

Bitcoin pressured by strong dollar, PCE inflation awaited 

The world’s largest cryptocurrency was nursing steep losses over the past week as traders grew skeptical over the timing of interest rate cuts by the Federal Reserve.

This sentiment is likely to see little signs of improvement this week, especially ahead of key PCE price index data due this Friday.

The reading is the preferred inflation gauge of the Fed, and is likely to factor into the central bank’s outlook on interest rates in the coming months. While Friday’s data is expected to show some mild cooling in inflation, the reading is still expected to remain well above the Fed’s 2% annual target- giving the central bank more headroom to keep rates high.

High rates bode poorly for crypto, given that they diminish the appeal of speculative, risk-driven assets such as crypto. 

Crypto price today: altcoins sink deeper than Bitcoin 

Major altcoins saw much deeper losses than Bitcoin, as a slew of token unlocks, dwindling institutional demand and a healthy dose of profit-taking pressured crypto prices. 

Recent capital flow data showed institutional demand, especially for crypto investment products, remained centered largely around Bitcoin. But even Bitcoin was seen logging heavy outflows earlier in June. 

World no.2 token Ether fell 4.2% to $3,366.81, hitting a one-month low as it largely consolidated gains made on hype over a spot Ether exchange-traded fund. 

XRP sank 3.3%, while ADA and SOL slid 4.3% and 7.4%, respectively. Both tokens had seen some gains in recent sessions. 

Among meme tokens, DOGE and SHIB fell 4.7% and 5.8%, respectively.