Markets
Crypto Market Watch: Bitcoin Surpasses $70,000; eyes set on new highs
The crypto market is buzzing with Bitcoin surpassing the $70,000 mark on Tuesday, driven by improving risk appetite and significant inflows into US spot Bitcoin ETFs. Analysts suggest the possibility of new highs this week, especially if weak US economic data continues to support the Federal Reserve’s rate cuts.
Rajagopal Menon, vice president at WazirX, highlighted strong Bitcoin buying sentiment, suggesting that “Bitcoin could reach new highs this week if weak US economic data continues to emerge, supporting the case for two rate cuts from the Federal Reserve this year”.
Recent data revealed a contraction in US economic growth, with declines in spending in manufacturing and construction, despite slight improvements in the labor market. This economic scenario is influencing the Federal Reserve’s stance, with expectations of maintaining current interest rates in June and July, and potential cuts in September.
US spot Bitcoin ETFs experienced their 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 just in the US but also in markets such as Hong Kong and Australia. Menon added: “With long-term holders ending their liquidation, Bitcoin exchanges saw net inflows of $148 million last week, while Ethereum attracted $33.5 million.”
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 holds more than $20 billion in assets under management, with $2.4 billion added in the last month alone, making it the third-largest flow in the entire ETF market,” the report stated.
Shivam Thakral, CEO of BuyUcoin, emphasized the role of institutional investors in driving up Bitcoin prices. “Cash ETFs added $2.4 billion in assets last month. Strong demand from institutional investors is driving Bitcoin prices currently and positive macroeconomic factors will help the crypto market sustain the momentum in the coming weeks,” Thakral said.
Broader movements
The rise of Bitcoin has had a ripple effect across the entire crypto market. Binance’s native token BNB hit an all-time high after gaining more than 11% following news that former CEO CZ began his prison sentence in California. Additionally, Telegram’s TON coin also reached an all-time high, with its native token NOT quadrupling in value two weeks after listing.
The June 5, 2024 CoinDCX Market Movement report noted that Bitcoin reached $71,000 with ETF inflows surpassing $800 million, the highest since March 12. “BTC now needs to clear 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 looks bullish,” the report stated However, it also warned about the potential for local leadership, as seen in mid-March.
Ethereum, although experiencing a slight increase, continues to underperform compared to Bitcoin, currently trading above $3,800. Despite this, most altcoins show signs of recovery and positive movement.