Bitcoin rose slightly on Tuesday, but cryptocurrency markets continued to decline amid ongoing tensions between the United States and Iran, and growing concerns about high inflation and interest rates.
The prevailing caution ahead of a high-level regulatory meeting in the United States also kept selling pressure on cryptocurrency markets.
Bitcoin rose 1% to $64,297.30 by 9:23 AM.
Tensions with Iran and concerns about interest rates are dampening appetite for cryptocurrencies.
Bitcoin and broader cryptocurrency prices remained within a narrow trading range amid escalating uncertainty related to military tensions between the United States and Iran.
The two countries remain at odds over the Strait of Hormuz, as US President Donald Trump continues to threaten Iran and Oman to reopen this vital waterway.
Oil prices have risen sharply this week, raising concerns about escalating energy-driven inflation, which in turn could prompt interest rate hikes in the coming months.
This scenario is negative for cryptocurrencies, which tend to thrive in environments of low interest rates and abundant liquidity.
Bitcoin and other cryptocurrency markets continued their downward trend this year amid concerns about rising interest rates. The delay in passing a highly anticipated US regulatory bill, known as the Clarity Act, also weighed on market sentiment.
Trump to meet with cryptocurrency industry leaders at the White House this week
President Donald Trump is expected to participate in a White House session of his administration's newly formed Innovation Council on Wednesday, according to a report by Coindesk.
This meeting will bring together CEOs of cryptocurrency companies and prediction markets, along with representatives from the traditional finance sector and the artificial intelligence sector.
The White House meeting will pave the way for a follow-up session at the Commodity Futures Trading Commission (CFTC) the next day. The CFTC oversees the Commission on Innovation and is expected to use Thursday's meeting to continue discussions on regulating cryptocurrencies.
Cryptocurrency prices today: Altcoins lag behind Bitcoin
Prices for most cryptocurrencies declined on Tuesday. Ether, the world's second-largest cryptocurrency, fell 0.2% to $1,903.48.
XRP fell 0.7% to $0.9984, while BNB declined 0.3%.
In contrast, Solana rose by 0.1%, while Cardano fell by 2.2%.
The meme cryptocurrencies Dogecoin and $TRUMP each fell by less than 1%.
