Bitcoin hovers at $62,000 as U.S. inflation data in focus
written by Bella PalmerA recovery in capital flows into crypto investment products translated into little price action, even as investment products saw their first inflows in five weeks
Bitcoin price rose marginally on Tuesday but stayed squarely within a trading range established over the last two months as focus remained squarely on U.S. inflation data for more hints on interest rates.
A recovery in capital flows into crypto investment products translated into little price action, even as investment products saw their first inflows in five weeks.
Bitcoin added 2.5% over the last 24 hours to $62,498.6 by 05:055 GMT.
The world’s biggest crypto currency took little support from data showing that crypto investment products- specifically spot Bitcoin ETFs - saw their first weekly capital inflows in five weeks.
Data from digital assets manager CoinShares showed crypto products saw inflows totalling $130 million in the week to May 12, with a bulk of these directed towards the U.S..
The launch of spot Bitcoin exchange traded funds in Hong Kong also triggered some inflows.
But despite the improvement in capital flows, overall trading volumes in crypto investment products remained largely dismal, staying well below highs seen in March when Bitcoin touched a lifetime high.
The world’s biggest crypto currency settled into a tight trading range between $60,000 and $70,000 over the last two months, as a mix of interest rate concerns, regulatory uncertainty and fading ETF hype spurred little actual price action. The token's hotly anticipated halving event also landed with a thud.
Wider crypto markets also tracked Bitcoin higher on Tuesday. World second largest token Ethereum gained 1.8% to $2,936.00, while Solana and XRP advanced 6.5% and 3%, respectively.
Memecoins saw some better gains, tracking an overnight rally in meme stocks like GameStop Corp and AMC Entertainment Holdings Inc on Wall Street. Dogecoin gained almost 10%, while newer memecoin PEPE gained more than 20%.
Still, overall crypto prices remained largely subdued in anticipation of key U.S. inflation data this week.
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