Bitcoin price today: down to $58k before PCE data, set for steep August losses

Investing.com-- Bitcoin’s price fell slightly on Thursday amid caution over an upcoming U.S. inflation reading that is likely to factor into the outlook for interest rates cuts.

But the world’s biggest cryptocurrency was nursing a steep decline in August, as a broader risk-off move across financial markets hit crypto prices particularly hard.

Bitcoin fell 1% to $58,852.9 by 01:55 ET (05:55 GMT), and was set to lose nearly 9% in August. 

Bitcoin nurses August losses amid slew of headwinds 

Bitcoin spent most of August trending lower, as the world’s biggest cryptocurrency was dented by persistent concerns over token distributions and mass sale events, especially from defunct exchange Mt Gox.

Slowing capital inflows into crypto also weighed, especially as initial hype over the launch of spot Bitcoin exchange-traded funds now appeared to have petered out. 

This, according to a recent report from blockchain analytics firm Glassnode, appeared to have largely quashed speculative activity in the token, which presented few immediate cues for price movement. 

Retail interest in Bitcoin was also seen largely dwindling in recent months. 

Concerns over a U.S. recession had sparked deep losses across global financial markets at the beginning of August, with crypto seeing no exception. But while broader markets, especially stocks, recovered from these initial losses, crypto has so far struggled.

Bitcoin established a trading range of $50,000 to $60,000 over the past month, and has struggled to remain above $60,000 for extended periods. 

Crypto price today: PCE data on tap, caution persists 

Broader cryptocurrency prices drifted lower in tandem with Bitcoin, and were also nursing losses for August. 

World no.2 crypto Ether fell 1% to $2,515.61, and was down a whopping 22.2% in August- its worst month since a rout seen in January 2022. 

Other altcoins XRP, SOL and ADA fell between 0.4% and 5%, and were also down for August. MATIC shed 3.3%.

Markets were largely on edge before key PCE price index data due later in the day. The reading is the preferred inflation gauge of the Federal Reserve, and is likely to factor into the central bank’s stance on interest rates. 

Lower rates bode well for cryptocurrencies, given that they free up more liquidity for speculative trade. 

Traders are pricing in a greater chance of a 25 basis point cut in September, according to CME Fedwatch. 

Elon Musk wins Dogecoin manipulation lawsuit, prices little changed 

Among meme tokens, Dogecoin fell 1%, taking little support from the dismissal of a lawsuit alleging Elon Musk and Tesla (NASDAQ:TSLA) manipulated the price of the meme token.

Musk had made a series of posts on social media website Twitter, now known as X, hyping up Dogecoin. 

He had also briefly teased the prospect of accepting DOGE as payment for Tesla vehicles. The carmaker currently accepts DOGE as payment for Tesla merchandise, according to its website.