Crypto Market Watch: Bitcoin Surpasses $70,000; Eyes Set on New Highs
Bitcoin’s price surged past $70,000 on Tuesday, driven by significant inflows into U.S. spot Bitcoin ETFs and weak U.S. economic data supporting potential Federal Reserve rate cuts. Analysts are optimistic about new highs this week if current trends continue.
The crypto market is excitedly buzzing as Bitcoin surpassed the $70,000 mark on Tuesday, driven by improving risk appetite and significant inflows into U.S. spot Bitcoin ETFs. Analysts hint at the possibility of new highs this week, especially if weak US economic data continues to support the case for Federal Reserve rate cuts.
Rajagopal Menon, VP of WazirX, pointed out the robust buy sentiment for Bitcoin, suggesting that “Bitcoin could reach new highs this week if weak U.S. economic data continues to emerge, supporting the case for two Federal Reserve rate cuts this year.”
Recent data revealed a contraction in U.S. economic growth, with declines in manufacturing and construction spending despite slight improvements in the job market. This economic backdrop is influencing the Federal Reserve’s stance, with expectations of maintaining current interest rates in June and July, and potential cuts in September.
U.S. spot Bitcoin ETFs experienced their second-largest net inflow of $887 million yesterday, led by Fidelity Wise, BlackRock, and ARK 21Shares. This surge in inflows reflects the growing interest in Bitcoin ETFs not just in the U.S., but also in markets like Hong Kong and Australia. Menon added, “With long-term holders ending their sell-off, Bitcoin exchange funds saw net inflows of $148 million last week, while Ethereum attracted $33.5 million.”
The CoinSwitch Markets Desk highlighted the sustained bullish sentiment in the market, noting that Bitcoin ETFs have seen 15 consecutive days of net inflows. “BlackRock’s iBit now holds over $20 billion in assets under management, with $2.4 billion added in the last month alone, making it the third largest inflow in the entire ETF market,” the report stated.
Shivam Thakral, CEO of BuyUcoin, emphasised the role of institutional investors in driving Bitcoin prices higher. “The spot ETFs have added $2.4 billion in assets over the past month. The strong demand from institutional investors is driving the Bitcoin prices currently and positive macroeconomic factors will help the crypto market to sustain the momentum in the coming weeks,” Thakral said.
Broader movements
Bitcoin’s surge has had a ripple effect across the crypto market. Binance’s native token, BNB, reached an all-time high after gaining more than 11 per cent, following news that former CEO CZ started his jail term in California. Additionally, Telegram’s TON coin also hit an all-time high, with its native token NOT quadrupling in value within two weeks of listing.
The CoinDCX Market Movement report for June 5, 2024, noted that Bitcoin touched $71,000 with ETF inflows crossing $800 million, the highest since March 12. “BTC now needs to clear its ATH level at around $73,500 to break the range and form a new ATH. Funding rates are still neutral, which is positive. Technically, the price action looks bullish,” the report stated. However, it also cautioned about the potential for a local top, as seen in mid-March.
Ethereum, while experiencing a slight uptick, continues to underperform compared to Bitcoin, currently trading above $3,800. Despite this, most altcoins are showing signs of recovery and positive movement.
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