Bitcoin falls, Ethereum's growth slows, market becomes cautious about cryptocurrencies.

On Tuesday,Foreign foreign exchange trading platform Bitcoin prices saw a slight decline, while the rise in Ethereum prices also cooled down. Traders generally remained cautious, especially when it came to cryptocurrency investments, as key inflation data is set to be released this week.

Enthusiasm for the approval of exchange-traded funds (ETFs) directly tracking Ethereum has also waned, particularly as the U.S. Securities and Exchange Commission (SEC) now needs to discuss listing applications for such products with fund management companies.

Last week, the SEC approved spot Ethereum ETF applications for major exchanges, spurring a sharp rise in Ethereum and the broader cryptocurrency market.

As of 01:15 Eastern Time (05:15 GMT), Bitcoin had fallen 1.3% over the past 24 hours to $67,901.9. Ethereum had dropped 2% to $3,844.48, retreating below its two-month high reached over the weekend.

Rising interest rate concerns cloud inflation data outlook. Ahead of the key Personal Consumption Expenditures (PCE) price index data release, long-term high interest rate concerns in the U.S. remain a focal point for the market.

The PCE price index is the Federal Reserve's preferred inflation gauge and is likely to influence the central bank's outlook on interest rates.

Warnings from a series of officials that stubborn inflation will delay any monetary easing has dampened sentiment for cryptocurrencies and other risk assets, with the market fearing that the Federal Reserve will maintain higher interest rates for a longer period.

This expectation has kept Bitcoin stable within its trading range over the past three months and has limited Ethereum's larger gains.

High interest rates are unfavorable for speculative assets like cryptocurrencies because they limit the liquidity available for such investments and increase the attractiveness of traditional low-risk investments like the dollar and treasury bonds.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.