Bitcoin holds At $69k. The price and the stock market did not move on Monday after a significant drop the previous weekend, which led to Bitcoin falling from its recent highs. The markets were concentrated solely on further major rallies that indicated the interest rates in the USA.
In last week’s trading, Bitcoin, the most valuable cryptocurrency, soared to a new high of $72,000. That was only short-lived and to be compared with the trading record-high level in March. Despite this, the dollar gained ground on Friday, and solid sell-offs and market weakness wed from that day on, which was at 8:51 Eastern Time (12:51 GMT). Bitcoin price has decreased by 0.3% over the last twenty-four hours;; thus,, it is $69,446.5 now.
Bitcoin Stabilizes After Fed Meeting CPI Emphasis
Traders were reconsidering their recent bets that the Federal Reserve would start cutting interest rates in September, resulting in Bitcoin’s price remaining at $69k during the weekend’s dip. The nonfarm payroll number was higher than predicted. The idea of this happened to be the standard price of cryptocurrencies against the dollar. The jobs report also detected other movements. It replaced the Fed meeting to plan their further actions. After a two-day conference, they will decide to keep rates on Wednesday.
Nevertheless, the main focus will be the Fed’s rate forecast. Consumer price index inflation data will also be released on Wednesday before the Fed rate decision. The Federal Reserve will probably pause the interest rate cut if the report indicates inflation is significantly above the 2% annual target. Because of the cryptocurrency market’s high liquidity and flexible lending standards. Higher rates for longer periods are negative for Bitcoin and the broader crypto market.
Crypto pricing now Mostly Red Altcoins
Cryptocurrencies also moved lower because of fears about more rate hikes, which added to the mass selling in global markets on weekends. Profits made since March were also limited because of securities’ on-sale due to investors’ caution. On Monday, the world’s second-largest Ethereum slipped by 0.6% to the price of $3,680.27 after losing 4% last week, Friday. Solana was overshadowed by Solana by 0.3%, while XRP, SOL, and ADA vs. their counterparts increased by 0.7% and 0.1%, respectively. Shiba Inu Index, with a gained index rate of 1.3%, struck the Investing.com Shiba Inu Index and DOGE/USD to drop by 1.8%.
Bitcoin ETFs Got $2bn Monthly Traders Estimate $10K ETH
As per the CoinShares report released Monday, crypto investment products had a week-long inflow. Around $2 billion last week, resulting in the five weeks being valued at over $4.3 billion. Meanwhile, trade volume for ETPs climbed 55% to $12.8 billion from $10.8 billion. 
April was a slow month for some of the big names in the product sector that missed the lure. The number of people buying, like BlackRock’s (NYSE: BLK) IBIT, which had inflows and zero net inflows for some days. The demand for spot Bitcoin ETFs has grown in the US since mid. May, with assets increasing by over $20 billion since the beginning of January 2021.
Referring to CoinShares, “Extremely, inflows were observed among nearly all suppliers; the exodus from the incumbents was still sluggish, though.” The favorable price flow enabled the total assets under management (AuM) to cross the $100 billion mark for the first time since March. However, Butterfill has confirmed that Spot ether ETFs. The most likely candidates for this, and they are directly responsible for increased leH purchases.
According to the information, the digital asset manager. Tyr Capital has revealed to CoinDesk that “$5-10 billion of new capital can be rolled out through ether products in the short to medium term. A probable high can be set for Ethereum and the environment surrounding it if it follows that trend by the end of the year. It added that the extent to which the price target of $10,000 becomes. A reality in 2024 is likely, especially in light of other marketing activities. The fact that ETH’s current deflationary nature accounts for this is good for ETH.
FAQs
What caused Bitcoin's recent drop from its $72k high?
Bitcoin's drop occurred following a combination of market sell-offs, a stronger dollar, and concerns about potential rate hikes by the Federal Reserve.
How are Bitcoin and other cryptocurrencies reacting to Federal Reserve decisions?
The cryptocurrency market is highly sensitive to Fed actions, with fears of higher interest rates negatively affecting Bitcoin and altcoin prices.
What is the outlook for Ethereum based on recent market data?
Ethereum's market outlook is optimistic, with potential price targets of $10,000 driven by strong demand for Ether ETFs and its deflationary characteristics.
How has the crypto investment market been performing recently?
Crypto investment products saw a significant inflow of $2 billion last week, marking a growing interest in crypto assets, including Bitcoin ETFs and Ether products.
