Bitcoin Price Drops Below $62,500 as Correction Deepens

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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June 24, 2024 02:59 EDT

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The price of Bitcoin dipped below $62,500 earlier today as the entire crypto market witnessed one of the worst weekly drops of the year.

The leading cryptocurrency is trading at its monthly low of near $62,490 amid a six day streak of outflows from US Bitcoin ETFs and uncertainty over monetary policies. Bitcoin price is down 6% in the last seven days.

The second leading crypto Ethereum also shed over 6% in the last seven days. At one point ETH traded at nearly $4,000 this month before it dropped to $3,360 at the time of writing, as per Coingecko data.

Federal Reserve to Cut Rate Only Once This Year

The Federal Reserve earlier this month left its benchmark interest rate unchanged and hinted at only cutting rate once this year, down from the three reductions it had earlier forecast. Fed indicating that there are some signs of inflation cooling down, but it still hasn’t reached the Fed’s annual target of 2%.

High interest rates have an inverse effect on crypto, as the appeal of speculative, risk-driven assets such as crypto diminishes at such times.

Correction Deepens in all Major Altcoins

The entire crypto market is down to $2.39 trillion, a correction of 3.5% in the last 24 hours alone. Top altcoins like BNB, Solana, XRP are down 6.6%, 16% and 4% in the last 7 days respectively.

Telegram’s TON, which had a decent run recently, is also down nearly 13% from its all-time high of $8.25, which was recorded earlier this month.

Tope meme coins Dogecoin, Shiba Inu and PEPE are down 5%, 6% and 11% in the last 24 hours, respectively. Dogwifhat suffered the most as it has already removed almost half of its gain in the last week.