The Bitcoin price lost ground slightly on Wednesday, continuing recent weakness amid fears over the health of the economy around the world.
Bitcoin price trades at decisive levels
The possibility of rising borrowing costs in the U.S. have halted enthusiasm for the cryptocurrency market, where bitcoin is the world’s largest capitalized cryptocurrency.
The Federal Reserve has made it clear that it wants to see more progress in controlling inflation, despite the previous week’s lower-than-expected US inflation data, so the US central bank expects only one interest rate cut this year, compared to the previous forecast of three cuts.
In parallel, recent data, such as Tuesday’s US retail sales, point to consumers feeling the repercussions of higher interest rates.
Activity will likely be limited on Wednesday as the U.S. celebrates the June 1 holiday, although bitcoin could trade near key levels that could define the near-term trajectory of the major cryptoasset.
Currently, bitcoin has potential to rise as high as $67,000, according to analytics platform Glassnode.
However, this level may create resistance, and surpassing it could put the digital currency on track for an even higher target of $69,500. In contrast, the $65,000 mark is seen as a key psychological support level, which could play a key role in maintaining investor credibility.
Bitcoin hit an all-time high of $73,797.68 on March 14, and last tested that level in early June.
Cryptocurrencies price today: Ether gains after SEC news
The cryptocurrency market in general received more positive news, thanks to positive legal news.
ETH/USD rose 2.4% to $3,547.25 after software firm Consensys indicated that the U.S. Securities and Exchange Commission is dropping its investigation into whether Ether is a security.
“The SEC’s Division of Enforcement has advised us that it is closing its investigation into Ethereum2.0,” Ethereum developer Consensysys said in a June 19 X post.
“This means that the SEC will not file charges alleging that ETH sales are securities transactions,” which the firm celebrated as a “big win for Ethereum developers, technology developers and industry representatives.”
Elsewhere, Cardano and DOGE/USD were up about 1.5%, Solana was virtually flat, while XRP fell more than 3%.
Financial advisors slow to embrace bitcoin ETFs
The long-awaited bitcoin exchange-traded funds launched in January, and financial advisors are taking their time adopting them, says BlackRock’s Samara Cohen.
At the moment, about 80% of bitcoin ETF purchases are coming from “self-directed investors who have made their own allocation, through an online brokerage account,” she explained at a summit last week.
Cohen, chief investment officer of ETFs and indexes at BlackRock, noted that hedge funds and broker-dealers have also been buyers, according to last quarter’s 13-F filings, but licensed investment advisors have been a bit more “cautious.”
Now, if increased demand pushes bitcoin to a new all-time high, $9.26 billion in short positions could be liquidated, according to Forbes 30 Under 30 award-winning bitcoin investor Eljaboom, triggering a dramatic price rally.
