Bitcoin (BTC) maintained a stable price around $57,000 on Tuesday, buoyed by robust inflows into spot bitcoin exchange-traded funds (ETFs) despite selling pressures from large investors.
Despite record highs in the S&P 500 and Nasdaq on Monday, Bitcoin remains distant from its March all-time high, albeit showing a 6.5% gain from last week’s lows.
Spot Bitcoin ETFs saw significant net inflows of nearly $295 million on Monday, a substantial amount compared to recent weeks, according to Farside Investors. Leading this influx was BlackRock’s iShares Bitcoin Trust (IBIT) with $187 million, followed by Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) with approximately $62 million in inflows.
These ETF inflows have historically spurred demand for Bitcoin, contributing to previous price surges such as the rally to over $73,000 earlier this year. Monday’s inflows helped counterbalance selling pressures from large investors, stabilizing Bitcoin’s price.
Meanwhile, Germany continued its bitcoin sell-offs, transferring approximately $362.12 million worth of bitcoin seized from an online piracy website to exchanges and brokers on Tuesday. Despite these transactions, not all movements from German government addresses imply sales, as some are transfers to crypto off-ramps.
Looking ahead, Bitcoin investors are closely monitoring Federal Reserve Chairman Jerome Powell’s testimony to Congress on Tuesday and Wednesday. Analysts speculate on potential signals for interest rate reductions later this year, which could impact broader market dynamics, including cryptocurrencies. Currently, markets anticipate no rate changes in the upcoming Fed meeting, but expectations for a rate cut in September are high, reflecting potential shifts in investment preferences.
Bitcoin’s resilience amidst ETF inflows and market dynamics underscores ongoing investor interest and the cryptocurrency’s role amid evolving economic conditions.
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