Markets
Crypto Market Watch: Bitcoin Surpasses $70,000; eyes fixed on new heights
The crypto market is abuzz as Bitcoin surpassed the $70,000 mark on Tuesday, thanks to improving risk appetite and strong inflows into US spot Bitcoin ETFs. Analysts are talking about the possibility of new highs this week, especially if weak U.S. economic data continues to support the case for a Federal Reserve rate cut.
Rajagopal Menon, Vice President of WazirX, highlighted the strong buying sentiment for Bitcoin, suggesting that “Bitcoin could reach new highs this week if weak US economic data continues to emerge, supporting the case for two cuts Federal Reserve rate this year.
Recent data has revealed a contraction in U.S. economic growth, with manufacturing and construction spending falling despite slight improvements in the labor market. This economic context influences the position of the Federal Reserve, with expectations of maintaining current interest rates in June and July and potential reductions in September.
US spot Bitcoin ETFs saw their second-largest net inflow of $887 million yesterday, led by Fidelity Wise, BlackRock and ARK 21Shares. This increase in flows reflects the growing interest in Bitcoin ETFs, not only in the United States, but also in markets like Hong Kong and Australia. Menon added: “As long-term holders end their sales, Bitcoin exchange funds saw net inflows of $148 million last week, while Ethereum attracted $33.5 million .
The CoinSwitch Markets Desk highlighted the sustained bullish sentiment in the market, noting that Bitcoin ETFs have seen 15 consecutive days of net inflows. “BlackRock’s iBit now has over $20 billion in assets under management, with $2.4 billion added in the last month alone, making it the third largest inflow in the entire ETF market “, the report said.
Shivam Thakral, CEO of BuyUcoin, highlighted the role of institutional investors in the rise in 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 crypto market maintain its momentum in the coming weeks,” Thakral said.
Wider movements
The rise of Bitcoin has had a ripple effect on the crypto market. Binance’s native token BNB hit an all-time high after gaining over 11%, following the 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 indicates that Bitcoin touched $71,000 with ETF inflows exceeding $800 million, the highest since March 12. “BTC now needs to break through its ATH level at around $73,500 to break the range and form a new ATH. Funding rates are still neutral, which is technically positive, price action appears bullish,” the report said. However, it also warned of the possibility of a local top, as seen in mid-March.
Ethereum, although seeing an uptick, continues to underperform against Bitcoin, which is currently trading above $3,800. Despite this, most altcoins are showing signs of recovery and positive movement.