ETFs
Bitcoin hovers around $57,000 on Spot ETF inflows
Key points to remember
- Cryptocurrency prices have remained broadly stable over the past 24 hours, with bitcoin hovering around $57,000.
- Inflows of about $295 million into Bitcoin Spot ETFs on Monday may have stabilized bitcoin prices.
- Germany continued to sell its seized bitcoins, sending $362.12 million to exchanges and brokers in three hours on Tuesday.
- Market watchers will be looking for signs of rate cuts when Federal Reserve Chairman Jerome Powell testifies before Congress on Tuesday and Wednesday.
Bitcoin (Bitcoin) price holds around $57,000 on Tuesday, perhaps as robust bitcoin exchange-traded funds (ETFs) The inflows offset price weakness due to large investors selling the crypto asset.
Despite New records for the S&P 500 and the Nasdaq Bitcoin is far from its all-time high reached in March on Monday, although it has gained about 6.5% from last week’s low.
Bitcoin Spot ETF Inflows Stabilize Price Weakness
Bitcoin Spot ETFs saw net inflows of nearly $295 million on Monday. That amount may seem small, but it’s significant because it’s higher than the combined net inflows of these products over the past two weeks, according to data from Farside Investors.
BlackRock’s iShares Bitcoin Fund (I BITE) was the biggest gainer in flows on Monday, with a total of $187 million, followed by Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC), which received approximately $62 million in admissions.
Inflows into the new bitcoin spot ETFs have been credited with creating demand for bitcoin since they began trading in January, which in The shift fueled a massive rally Bitcoin prices hit all-time highs of over $73,000 in March.
Similarly, Monday’s capital inflows may have helped offset some of the price weakness Bitcoin attributed to selling pressure from large investors.
Germany continues to sell Bitcoin
Germany continued to sell bitcoins that were previously entered According to Arkham Intelligence, the European Union member sent $362.12 million worth of bitcoin to various exchanges and brokers during a three-hour period on Tuesday, including $184.58 million sent in a 20-minute window.
That said, it should not be forgotten that not everyone blockchainTransfers based on German government Bitcoin addresses are necessarily sales, as they are simply transfers to various crypto off-ramps.
In fact, the German government has received bitcoin from multiple exchanges in the past 24 hours. That’s likely because bitcoin couldn’t be sold at the prices the government wanted, The Block reported Monday. Germany still has about $1.31 billion worth of bitcoin to sell, according to Arkham Intelligence.
Bitcoin Investors Look to Powell and the Fed
Bitcoin and other market analysts will be watching Federal Reserve Chairman Jerome Powell’s testimony at the semiannual monetary policy report to Congress on Tuesday and Wednesday, as some hope signs that interest rates could be cut before the end of the year, which could be a boon for all markets.
Higher rates pushed up Treasury bond yieldsmaking them more attractive than riskier investments like cryptocurrencies. That could change once the Fed cuts its benchmark rate and interest rates start to fall.
Currently, the CME FedWatch Tool indicates that markets almost unanimously expect rates to stay the same for the Fed’s meeting later this month; however, there is about a 73% chance that a rate cut is in store for September.