Bitcoin surpassed $61,400 early Tuesday, fueled by significant inflows into U.S.-based spot ETFs, marking their second-largest inflow of August. Bitcoin ETFs experienced net inflows exceeding $61 million, the most substantial since the $192 million recorded on August 8. Leading this surge, BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) garnered $92 million in inflows, while Bitwise’s Bitcoin ETF (NYSE: BITB) faced $25 million in outflows.
Ether also saw a notable increase, rising up to 4% as investors speculated on potential Federal Reserve rate cuts anticipated later this week. With a relatively sparse economic data calendar, market focus has shifted to the Federal Reserve’s July meeting minutes set for release on Wednesday, and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
“Despite media-driven fears, it’s essential to recognize that the real value of Bitcoin lies in its long-term role as a hedge and store of value, beyond the short-term ETF fluctuations or speculative theories,” stated Stefan Godly, Co-Founder of Venture Studio, in an interview with Investing.com.
The cryptocurrency market also gained momentum following a tweet from Tron founder Justin Sun, suggesting that China might reconsider its ban on Bitcoin and other cryptocurrencies. China’s Supreme Court and public prosecutor have revised their interpretation of the country’s Anti-Money Laundering (AML) laws, now officially acknowledging “virtual asset” transactions for the first time.
The update represents the first significant amendment to the AML Law since its inception on January 1, 2007.
In parallel, State Street (NYSE: STT) has teamed up with digital asset custodian Taurus to advance its tokenization strategy, planning to expand into crypto custody once the U.S. regulatory landscape becomes more favorable. State Street, which oversees $44.3 trillion in assets, is poised to launch tokenized versions of traditional assets.
The global cryptocurrency market cap surged by 3.17% to approximately $2.14 trillion within the past 24 hours. Stablecoins, frequently utilized for trading and hedging, saw their 24-hour volume reach $60 billion, accounting for 92.43% of the total market volume.
Polkadot’s price increased by 1.3% on the day, and several meme coins also experienced gains. The broader bullish trend has positively impacted market favorites such as Pepe, Dogwifhat, and Brett. Notably, Sundog, the largest meme coin launched via SunPump—an initiative by the controversial entrepreneur Justin Sun and competitor to Tron’s Pump.fun—emerged as a standout performer.
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