Markets
Crypto Market Watch: Bitcoin Surpasses $70,000; eyes set on new highs
The cryptocurrency market is buzzing as Bitcoin crossed the $70,000 mark on Tuesday, driven by improving risk appetite and significant inflows into spot Bitcoin ETFs in the United States. Analysts hint at the possibility of new highs this week, especially if weak US economic data continues to support the need for rate cuts by the Federal Reserve.
Rajagopal Menon, vice president of WazirX, highlighted the strong buying sentiment for Bitcoin, suggesting that “Bitcoin could hit new highs this week if weak US economic data continues to emerge, underpinning the need for two Federal Reserve rate cuts this week.” year.”
Recent data has revealed a contraction in US economic growth, with declines in manufacturing and construction spending despite slight improvements in the labor market. This economic environment is influencing the Federal Reserve’s position, with expectations of maintaining current interest rates in June and July and potential cuts in September.
US spot Bitcoin ETFs recorded the second-largest net inflow of $887 million yesterday, led by Fidelity Wise, BlackRock and ARK 21Shares. This increase in inflows reflects the growing interest in Bitcoin ETFs not only in the United States, but also in markets such as 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 persistent bullish sentiment in the market, noting that Bitcoin ETFs have recorded 15 consecutive days of net inflows. “BlackRock’s iBit now has more than $20 billion in assets under management, with $2.4 billion added in the last month alone, making it the third largest inflow into the entire ETF market,” the report said.
Shivam Thakral, CEO of BuyUcoin, highlighted the role of institutional investors in driving up Bitcoin prices. “Spot ETFs added $2.4 billion in assets over the past month. Strong demand from institutional investors is currently driving Bitcoin prices, and positive macroeconomic factors will help the cryptocurrency market sustain momentum in the coming weeks “, said Thakral.
Wider movements
Bitcoin’s surge has had a ripple effect throughout the cryptocurrency market. Binance’s native token BNB hit an all-time high after gaining over 11%, following news that former CEO CZ has begun his prison sentence 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, found that Bitcoin hit $71,000 with ETF inflows topping $800 million, the highest since March 12. “BTC now needs to break above its ATH level at around $73,500 to break the range and form a new ATH. Funding rates are still neutral, which is good. Technically, the price action looks bullish,” the report states. However, he also warned about the potential for a local maximum, as seen in mid-March.
Ethereum, despite recording a slight increase, continues to underperform compared to Bitcoin, which is currently trading above $3,800. Despite this, most altcoins are showing signs of recovery and positive movement.