Bitcoin Price Drop Amid US Inflation Concerns

Bitcoin price falls once again on Monday, testing support levels as sentiment towards cryptocurrencies remains low ahead of U.S. inflation data release.

Bitcoin Struggles Amid Dollar Strength

The Bitcoin price dropped 0.4% in the past 24 hours to $60,910.5 by 00:45 ET (04:45 GMT), approaching the critical $60,000 support level.

The cryptocurrency had fallen over 3% in the last week, with fears of increased U.S. regulatory actions and capital outflows making the situation worse.

Dollar Stability Pressures Cryptocurrency

The dollar’s stability added pressure on Bitcoin prices, with traders favoring the greenback ahead of upcoming U.S. inflation data releases.

The focus on U.S. inflation data due this week could further dampen hopes of early interest rate cuts by the Federal Reserve, negatively affecting crypto markets.

Comments from Fed officials questioning rate cuts expectations also weighed on market sentiment.

Altcoins Retreat, Memecoins Decline

Broader cryptocurrency prices also declined, with Ethereum falling 1.5%, while Litecoin and Bitcoin Cash dropped by 5.8% and 3.2%, respectively.

Memecoins like Dogecoin also experienced losses, with Shiba Inu down by 5.1%.

Despite Presidential candidate Donald Trump voicing support for the crypto industry, the overall market struggles to find positive momentum.