Proactive Investors - Bitcoin sank to a three-week low yesterday but has begun to rally ahead of US inflation data and the Federal Reserve meeting later on Wednesday.
The largest cryptocurrency fell below $62,000 for the first time since the middle of May, but in the hours since BTC/USD has rebounded to $67,760, up 1% over 24 hours.
The US Labor Department will publish CPI data at 8:30am Eastern Time (1.30pm BST), which is expected to show prices increased 0.1% in May, easing from 0.3% in April.
The Fed is expected to keep interest rates unchanged in its press conference at 7pm local time, maintaining the benchmark lending rate of 5.25-5.50%.
Analysts at Keefe, Bruyette & Woods said crypto asset prices are "highly correlated to risk assets, so price action will follow the macro narrative for the most part, with the additional factor of global regulatory action weighing on the sector".
Among larger altcoins, ethereum (ETH) similarly rebounded carefully from a three-week low. Over 24 hours it is up 0.3% at around $3,542.
Among the 10 largest cryptos, Dogecoin (DOGE), Cardano (ADA) and Solana (SOL) were the fallers, down between 0.7% and 0.5%.
Out of the largest 100 altcoins, Akash Network (LON:NETW) (AKT) fell the most, down 13.4%, followed by Celestia (TIA), Wormhole (W) and Ordi (ORDI), down 3.7%, 2.5 and 2.4%.
Biggest risers were Oasis (ROSE), Pepe (PEPE) and Kaspa (KAS), up 11%, 7.8% and 6.8% over 24 hours.