Bitcoin holds At $69k: The bitcoin price remained unchanged on Monday, following a significant decline over the weekend that caused the cryptocurrency to pull back from recent highs. The markets were focused entirely on additional critical indicators regarding the interest rates in the United States.
During the previous week, the most valuable cryptocurrency in the world reached a peak of $72,000, bringing it to a point where it was almost identical to the record highs reached in March. Following the dollar’s recovery on Friday, however, it experienced significant profit-taking and weakness from that day on, at 8:51 Eastern Time (12:51 GMT). The bitcoin price has dropped by 0.3% over the previous twenty-four hours, reaching $69,446.5.
Bitcoin Stabilizes After Fed Meeting, CPI Emphasis
Traders rethought their recent wagers that the Federal Reserve will begin cutting rates in September, leading to Bitcoin holds At $69k weekend dip. The nonfarm payrolls figure was hotter than expected. This idea’s effect hit the general price of cryptocurrencies on the dollar. The payrolls report also drew attention to the next Federal Reserve meeting, when policymakers are expected to conclude a two-day meeting on Wednesday with a decision to maintain current interest rates.
The focus, however, will be on the Federal Reserve’s rate projections. Inflation data for the consumer price index is also due Wednesday, just before the Fed rate decision. The Federal Reserve will likely hesitate to lower interest rates if the report shows inflation is much higher than its 2% yearly target. Since the cryptocurrency market typically enjoys more liquidity and lenient lending standards, high-for-longer rates are bad news for Bitcoin and the broader cryptocurrency market.
Crypto pricing now: Mostly Red Altcoins
Fears of increased rates impacted the cryptocurrency sector, which led to heavy losses in broader markets over the weekend. Gains through May were also cut short as investors cashed out. On Monday, the world’s second-most-valued cryptocurrency, Ethereum, fell 0.6% to $3,680.27, following an almost 4% loss on Friday. While Solana dropped 1.5%, XRP, SOL, and ADA all increased 0.7% and 0.1%, respectively. The Investing.com Shiba Inu Index fell 1.3%, and DOGE/USD fell 1.8% among meme coins.
Bitcoin ETFs Got $2bn Monthly; Traders Estimate $10K ETH
Asset manager CoinShares reported on Monday that crypto investment products received. About $2 billion last week, bringing the five-week run to over $4.3 billion. For the week, exchange-traded product (ETP) trading volumes jumped 55% to $12.8 billion, up from $10.8 billion. With approximately $1.97 billion, Bitcoin holds at $69k and is the clear leader. Meanwhile, Ether had its best week since March, receiving nearly $70 million.
After a slow April in which big products like BlackRock’s (NYSE: BLK) IBIT had outflows and zero net inflows on some days. Demand in spot bitcoin ETFs has picked up steam in the US since mid-May, with over $20 billion in assets since its January launch. IBIT has become the largest bitcoin ETF due to the subsequent rise in inflows.
“Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents,” according to CoinShares. The favorable price movement allowed total assets under management (AuM) to reach $100 billion for the first time since March of this year. The unexpected decision by the SEC to allow. Spot ether ETFs are likely to blame for the increasing buying of ETH, according to Butterfill. While this happens, some market participants are betting that ETH product inflows will continue into the new year.
According to reports, digital asset manager Tyr Capital told CoinDesk that “$5-10 billion of fresh capital could be channeled through ether products in the short to medium term.” This can potentially send Ethereum and its ecosystem soaring to all-time highs before the year ends. It noted that a price target of $10,000 in 2024 seems plausible, especially considering other elements. ETH’s current deflationary status supports this.
