According to Mars Finance, Bitcoin fluctuated on Tuesday, indicating that traders were nervous ahead of the release of US inflation data and the Federal Reserve's monetary policy decision.
As of 11:00 a.m. Singapore time, Bitcoin fell by 2.5%, falling to a one-week low, and has now rebounded to above $68,000. Other mainstream currencies such as Ethereum and Dogecoin also fell simultaneously.
Inflation data and the Federal Reserve's outlook on Wednesday are likely to heighten concerns that interest rates will remain elevated for longer, a difficult backdrop for speculative assets such as cryptocurrencies.
Anand Gomes, co-founder of derivatives platform Paradigm, said: “In the crypto space, no news is bad news. The market is like an addict, constantly needing good news to support it.”
