Cryptocurrency prices were mixed on Thursday, June 1, 2023, as investors weighed the impact of rising interest rates and inflation on the digital asset market.
Bitcoin, the world’s largest cryptocurrency, was down 1.5% at $30,000. Ethereum, the second-largest cryptocurrency, was down 2% at $2,000.
Other major cryptocurrencies were also lower, with Solana down 3%, Cardano down 4%, and XRP down 5%.
The sell-off in cryptocurrencies comes as investors are becoming increasingly risk-averse amid rising interest rates and inflation.
The Federal Reserve is expected to raise interest rates by 50 basis points at its next meeting on June 15, which would be the largest increase since 2000.
Inflation is also at a 40-year high, which is putting pressure on household budgets and could lead to slower economic growth.
Despite the recent sell-off, some analysts believe that cryptocurrencies could be a good investment in the long term.
“Cryptocurrencies are still a new asset class, and they are volatile,” said Fundstrat Global Advisors managing director Tom Lee. “But we believe that they have the potential to be a great investment over the long term.”
Lee believes that cryptocurrencies could reach $100,000 per bitcoin in the next few years.
Other analysts are more cautious, but they believe that cryptocurrencies could still be a good investment for investors who are willing to take on some risk.