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Investing.com – Bitcoin price fell on Tuesday as risk appetite remained weak amid longer-term higher U.S. interest rates and ongoing geopolitical tensions in the Middle East.
The surge rose to an over five-month high this week, putting pressure on the broader crypto market as strong retail sales and inflation data led traders to price out expectations of imminent U.S. interest rate cuts.
fell 3.6% in the last 24 hours to $62,555.0 by 01:05 ET (05:05 GMT). Traders continued to largely lean toward traditional safe havens such as the dollar and gold.
The approval of the Hong Kong crypto ETF causes little excitement
Weak risk appetite largely overshadowed the approval of spot crypto exchange-traded funds by Hong Kong regulators on Monday.
The move offers investors from Hong Kong and China some access to crypto markets after cryptocurrencies were effectively banned in mainland China in 2021 due to gambling and market manipulation issues.
But despite receiving approval for the products from Hong Kong regulators, three ETF providers have yet to bring any offerings to market.
It remains to be seen whether Hong Kong ETFs can spark a similar rally in Bitcoin as US markets did earlier this year. The approval of spot ETFs in the US had led to a rapid rally in the world's largest cryptocurrency over the past two months, although capital flows have now slowed as enthusiasm waned.
Crypto Price Today: Prices fall as crypto ETFs see outflows
Broader cryptocurrency prices fell on Tuesday as risk appetite remained weak amid tensions between Iran and Israel as well as the prospect of longer-term higher interest rates in the US.
fell 2.9% to $3,047.26, while and lost 2.1% and 9.8%, respectively.
Crypto prices experienced a sudden crash over the weekend following an Iranian attack on Israel, but recovered somewhat after reports that damage from the attack was minimal.
However, reports this week indicated that Israel is now considering retaliation for the attack.
U.S. data was hotter than expected, lifting the dollar to a five-month high, while expectations of an upcoming speech also made traders nervous.
The weak risk environment caused traders to become more cautious towards speculative assets such as cryptocurrencies.
Data from digital asset manager CoinShares also showed on Monday that crypto investment products saw outflows last week.
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