On Tuesday, the price of Bitcoin stabilized, remaining just below crucial levels as weakness in the dollar, coupled with speculation surrounding potential interest rate cuts by the Federal Reserve, spurred some flows into the cryptocurrency markets.
Over the past 24 hours, Bitcoin experienced a modest 0.8% increase, reaching $69,049.3 by 01:50 ET (05:50 GMT). The world’s largest cryptocurrency now sits approximately 2% away from breaking out of the $60,000 to $70,000 trading range observed since mid-March. However, the sustainability of Bitcoin’s ability to maintain levels above $70,000 remains uncertain.
May witnessed a surge in capital inflows into digital asset investment products, according to data from digital asset manager CoinShares. In the seven days leading up to June 3, these products experienced inflows for the fourth consecutive week, totaling $2 billion for the month. Bitcoin predominantly led these inflows, while Ether, the world’s second-largest token, saw increased capital inflows following the Securities and Exchange Commission’s approval of exchange-traded funds directly tracking Ether.
These inflows signal an improvement in sentiment toward cryptocurrencies after experiencing extended outflows throughout April. However, despite this positive trend, overall trading volumes and daily turnover in crypto investment products continue to show weakness.
Furthermore, more countries have been observed approving spot ETFs tracking cryptocurrencies. Australia recently saw the launch of a spot Bitcoin ETF on Tuesday, following a similar occurrence in Hong Kong last month.
The broader cryptocurrency markets saw gains this week as the appetite for risk-driven assets improved on the anticipation of eventual rate cuts by the Federal Reserve. The weak U.S. purchasing managers index data prompted traders to increase bets on a September rate cut, with lower rates generally favoring risk-heavy, speculative assets such as cryptocurrencies.
On Tuesday, gains across the broader crypto markets were notable following speculation surrounding interest rate cuts, which dragged the dollar to two-month lows. However, Ether, the second-largest token, experienced a slight decline of 1.4% to 3,762.49, showcasing some profit-taking after a significant rally throughout May.
Other cryptocurrencies such as SOL and XRP registered minor increases of about 0.4% each. Among meme coins, SHIB and DOGE saw declines of 4% and 1.6%, respectively, also experiencing profit-taking after notable gains in May.
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