Bitcoin price dips ahead of US inflation report and Fed’s decision on interest rates

Bitcoin’s value fell below US$67,000 for the first time this month, ahead of the US inflation report and the Federal Open Market Committee’s decision on interest rates scheduled for this week.

The latest employment report showed that the US economy added 272,000 new jobs in May. Given ongoing inflation and strong employment growth, investors have lowered their expectations for a rate cut this year.

The Fed has kept the current interest rate steady at about 5.5% since July 2023.

Bitcoin’s decline on Tuesday also dragged down other cryptocurrencies, with total market cap falling 5.6% to around $2.5 trillion, according to CoinGecko.

While Ethereum was trading below $3,500, Notcoin, the cryptocurrency of the Telegram-based viral clicker game, suffered the biggest loss of the day, falling 18.6%.

Brett, the largest memecoin by market cap on Coinbase’s Ethereum layer-2 chain Base, was not far behind, losing 18.4%.

Inflows into 11 spot Bitcoin exchange-traded funds in the US also hit a monthly low of US$64.9 million on Monday, according to data from Farside Investors.