Bitcoin fell to a two-month low of $57,000 on Thursday, following the release of minutes from the US Federal Reserve’s June meeting, showing that the central bank is not yet ready to decrease interest rates, according to CNBC.
Bitcoin lost 5% in 24 hours to $56,837, going below the $57,000 level for the first time since May 1, according to statistics from crypto ranking site CoinGecko.
Since then, bitcoin has reduced losses significantly, and was trading at $57,932.57, down 3.4% as of 5:05 p.m. in London.
Rival token ether, the world’s second-largest cryptocurrency, fell 5% to $3,120.
This follows the United States Federal Reserve statement on Wednesday at its June meeting which showed officials are reluctant to lower interest rates until additional data shows inflation moving sustainably toward the central bank’s 2% target.
Higher interest rates are generally less favourable for bitcoin and other cryptocurrencies since they reduce investor risk appetite.
Bitcoin surged to an all-time high of more than $73,700 in March of this year, when the Securities and Exchange Commission approved the first U.S. spot bitcoin exchange-traded fund, or ETF.
ETFs allow investors to purchase a product that tracks bitcoin’s price without owning the underlying cryptocurrency. Crypto enthusiasts claim that this has helped legitimize the asset class and made it simpler for larger institutional investors to participate.
Since then, however, bitcoin has been trading within a range between around $59,000 and $72,000.
Recently, the world’s largest cryptocurrency has been pressured by news that failed bitcoin exchange Mt. Gox is preparing to distribute over $9 billion in coins to customers, which is expected to result in considerable selling action.
On Thursday, a tiny quantity of bitcoin was moved from three wallets formerly associated with Mt. Gox, according to Arkham Intelligence. The highest movement was for $24 worth of the coin. It was not immediately obvious whether this transaction was part of the Mt. Gox repayment scheme.
Recall, the director-general of the Securities and Exchange Commission, Emomotimi Agama had stated that Nigeria’s cryptocurrency market is worth over $400 million.
According to the SEC DG, bitcoin trading and transactions involve a considerable portion of the population.
