Blockchain
Bitcoin (BTC) price drops to $67,300 as shares struggle
The price of bitcoin (BTC) it traded in an exceptionally tight trading range around $68,000 in the days following the Memorial Day holiday in the United States, but fell near the low of the week in trading hours on Friday morning.
As of 11:45 a.m. ET, bitcoin was changing hands at $67,300, down 1% over the past 24 hours and down more than 2% from two hours earlier, when it briefly rose above $69,000. The widest Coin Desk 20 it fell 1.1% over the past day.
May, however, has been strong for bitcoin, which is now up 11% since the start of the month around the $60,000 level. It underperformed CoinDesk 20’s roughly 20% advance, fueled by a 31% gain in ether price (ETH) thanks to the surprising regulatory turnaround in the prospects for a spot ETF on that asset.
This week’s muted action in bitcoin – the price remained largely in the $67,000-$69,000 range – came alongside struggles in other risky assets, including U.S. stocks. While remaining near all-time highs, the Nasdaq is down about 2% this week, while the S&P 500 Index is down about 1.5%.
US economic data continued to point to stagflation, with the April Core PCE Price Index rising 2.8% year-over-year, in line with expectations and at the same pace as the previous month. Chicago’s May PMI fell to 35.4 compared to expectations of 41 and 37.9 in April. Only in the midst of the 2008/2009 global financial crisis and the Covid lockdowns of March/April 2020 was May’s weak figure matched. The bond market rallied following the news, with the yield on the 10-year U.S. Treasury note falling 5.5 basis points to 4.50%.
June begins on Saturday, and next week should bring a little more clarity to the U.S. economic picture thanks to Monday’s national PMI report and Friday’s national jobs report. Confirmation of weakening economic conditions, and with those improved prospects of lower interest rates, could prove to be the catalyst for bitcoin’s attempt to surpass its all-time high above $73,000 set in March. Strong economic data, however, could mean a retest of the May lows.