Ethereum rally cools to $67,000 amid inflation concerns



Investing.com — Bitcoin prices edged lower on Tuesday, while gains for No. 2 coin Ethereum also cooled as expectations for key inflation data this week kept traders largely risk-averse, especially for crypto currency.

Hype over the approval of an exchange-traded fund directly tracking Ethereum has also taken a backseat, especially since the SEC must now engage with fund managers regarding applications to list such potential products.

The U.S. Securities and Exchange Commission last week approved a major exchange's application to list an Ethereum spot ETF, sparking a surge in the token and broader cryptocurrency markets.

It was down 1.3% in the past 24 hours to $67,901.9 as of 01:15 ET (05:15 GMT). It fell 2% to $3,844.48, also retreating from a two-month high hit over the weekend.

Interest rate concerns mount ahead of inflation data

Concerns about keeping U.S. interest rates high for an extended period of time remain in focus, especially ahead of key data due later this week.

The reading is the Fed's preferred inflation gauge and could influence the central bank's interest rate outlook.

Confidence in cryptocurrencies and other risk-driven assets has taken a hit amid growing concerns that the Federal Reserve will keep interest rates high for longer, especially after a series of officials warned that sticky inflation would delay any monetary easing.

The concept also kept Bitcoin trading within a trading range established in the past three months and capped Ethereum's larger gains.

High interest rates are detrimental to speculative assets such as cryptocurrencies because they limit the liquidity that can be invested in the sector, and they also increase the attractiveness of traditional low-risk investments such as the U.S. dollar and Treasury bonds.

Cryptocurrency prices did not benefit from Monday’s slight decline.

Inflation data will also be released this week, ahead of personal consumption expenditure data.

Cryptocurrency Prices Today: Altcoins, Meme Coins Suppressed

Broader cryptocurrency prices were little changed as trading volumes were also subdued due to market holidays in the US and UK.

Altcoins and altcoins were both up less than 1%, while meme tokens and altcoins were trading flat to lows.





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