Bitcoin price fell on Tuesday as risk appetite remained frail in the face of higher-for-longer U.S. interest rates and continued geopolitical tensions in the Middle East.
The dollar shot up to an over five-month high this week, pressuring the broader crypto market as strong retail sales and inflation data saw traders price out expectations of early U.S. interest rate cuts.
Bitcoin fell 3.6% in the past 24 hours to $62,555.0 by 01:05 ET (05:05 GMT). Traders remained largely biased towards traditional safe havens such as the dollar and gold.
Hong Kong crypto ETF approval provides little cheer
Weak risk appetite largely overshadowed the approval of spot crypto exchange-traded funds by Hong Kong regulators on Monday.
The move offers Hong Kong and Chinese investors some exposure to crypto markets, after cryptocurrencies were effectively banned in mainland China in 2021 over issues of gambling and market manipulation.
But while three ETF providers received approval for the products from Hong Kong regulators, they are yet to launch any offerings.
It remains to be seen whether the Hong Kong ETFs can inspire a rally in Bitcoin akin to that seen in U.S. markets earlier this year. The approval of spot U.S. ETFs had sparked a stellar rally in the world’s biggest cryptocurrency over the past two months, although capital flows were now seen slowing as enthusiasm cooled.
Crypto price today: prices fall as crypto ETFs see outflows
Broader cryptocurrency prices fell on Tuesday, as risk appetite remained weak amid Iran-Israel tensions, as well as the prospect of higher-for-longer U.S. interest rates.
Ethereum fell 2.9% to $3,047.26, while XRP and Solana lost 2.1% and 9.8%, respectively.