Bitcoin drops to one-week low as traders await CPI, Fed decision

BITCOIN wobbled on Tuesday (Jun 11) in a sign of trader nerves ahead of US inflation data and the Federal Reserve’s monetary-policy decision.

The largest digital asset slid as much as 2.5 per cent to a one-week low before changing hands at US$68,000 as at 10.42 am in Singapore. Smaller tokens such as Ether and meme-crowd favourite Dogecoin also nursed losses.

Bitcoin hit a record of US$73,798 in March, lifted by inflows into dedicated US exchange-traded funds, but has struggled for new highs since then. The inflation data and Fed outlook on Wednesday may cement fears that interest rates will stay higher for longer, a tough backdrop for speculative fare such as crypto.

“No news is bad news in crypto,” said Anand Gomes, co-founder of Paradigm, a derivatives platform. “The market is like a junkie that constantly needs bullish news to stay up. So when there is none, the path of least resistance is lower.” BLOOMBERG