Bitcoin price Near $65k Amid Economic Concerns

Bitcoin price experienced a slight drop on Wednesday, continuing its recent weakness due to concerns about the global economy’s health.

At 05:30 ET (09:30 GMT), Bitcoin was down 0.5%, trading at $65,217.0. This represents a loss of about 4% over the past trading week, having dipped below $65,000 on Tuesday for the first time since May 16.

Key Levels for Bitcoin price

The potential for prolonged higher U.S. borrowing costs has diminished enthusiasm in the cryptocurrency market, with Bitcoin being the largest cryptocurrency globally.

Several Federal Reserve officials have emphasized the need for more progress in controlling inflation, even after last week’s weaker-than-expected U.S. inflation data. This has led the U.S. central bank to forecast only one interest rate cut this year, down from the previous expectation of three cuts.

Additionally, recent data, including Tuesday’s U.S. retail sales release, indicates that consumers are feeling the impact of high interest rates.

Trading activity might be subdued on Wednesday due to the Juneteenth holiday in the U.S., but Bitcoin is hovering near crucial levels that could determine its short-term direction.

According to the analytics platform Glassnode, Bitcoin has the potential to rebound toward $67,000. However, this level might act as resistance, and surpassing it could push the digital currency toward an even higher target of $69,500. Conversely, the $65,000 mark is seen as a vital psychological support level, crucial for maintaining investor confidence.

Bitcoin reached a record high of $73,797.68 on March 14 and last approached that level at the beginning of June.

Cryptocurrency Market Update: Ether Gains on SEC News

Positive legal news has provided some support to the broader cryptocurrency market.

ETH/USD increased by 2.4% to $3,547.25 after the software company Consensys announced that the United States Securities and Exchange Commission is closing its investigation into whether Ether is a security.

“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Ethereum developer Consensys said in a June 19 X post. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions,” which the firm hailed as a “major win for Ethereum developers, technology providers, and industry participants.”

Meanwhile, Cardano and DOGE/USD both gained around 1.5%, Solana remained largely flat, while XRP dropped by over 3%.

Slow Adoption of Bitcoin ETFs by Financial Advisors

The much-anticipated Bitcoin exchange-traded funds (ETFs) launched in January, but financial advisors have been slow to adopt them, according to BlackRock’s Samara Cohen.

Currently, approximately 80% of Bitcoin ETF purchases are likely coming from “self-directed investors who have made their own allocation, often through an online brokerage account,” Cohen said at a recent summit.

Cohen, BlackRock’s chief investment officer of ETF and index investments, noted that hedge funds and brokerages have also been buyers, based on last quarter’s 13-F filings, but registered investment advisors have been more cautious.

However, if increased demand drives Bitcoin to a new all-time high, $9.26 billion in shorts could be liquidated, according to Eljaboom, a Bitcoin investor and Forbes 30 Under 30 recipient, potentially leading to a significant price surge.