Investing.com– Bitcoin rose on Tuesday, extending a rebound from recent sessions, as hefty losses from last week prompted buyers to enter cryptocurrency markets.

But Bitcoin’s recovery was narrow by the wait for key U.S. inflation data this week. The continued capital outflows also showed that sentiment toward cryptocurrencies remained tender.

rose 3.4% to $56,715.3 at 01:1 ET (05:16 GMT).

Bitcoin Nurtures Last Week’s Big Losses

Cryptocurrency markets have seen massive declines over the past week, amid a broader decline in risk-on markets, with investors increasingly concerned about an economic slowdown.

As a result of the sell-off, Bitcoin’s value fell to $52,000, but the token managed to recover its losses over the last two sessions.

Opportunity buying has played a major role in Bitcoin’s growth as recent capital flow data has shown that institutional investors have become largely averse to cryptocurrencies.

Crypto sees immense weekly outflows

Cryptocurrency markets saw a total outflow of about $726 million over the past week, according to data released Monday by digital asset manager CoinShares. It was the largest weekly outflow since March.

Investors saw brief positions in Bitcoin boost as altcoins were sold across the board.

Concerns about slowing economic growth and expectations of smaller interest rate cuts by the Federal Reserve contributed to the outflows, as did widespread risk aversion in global financial markets.

“The cryptocurrency market is in an unusual state of suspended animation. Trading volumes and liquidity have fallen in recent weeks, coupled with continued ETF outflows and declining popularity of once-hot underlying trades. It’s as if the entire sector is holding its breath, waiting for a catalyst,” Kristian Haralampiev, head of structured products at Nexo, told Investing.com.

Haralampiev noted that there was a divergence in speculation between Ether and , with the bias towards Solana reflecting some market hedging in an effort to achieve greater profits from the token.

Trump-Harris presidential debate in focus

Cryptocurrency markets have been eagerly awaiting the first presidential debate between Donald Trump and Kamala Harris, which is set to take place on Tuesday.

Any signs that Trump is gaining ground in the presidential race will likely send cryptocurrency prices higher, given that the Republican candidate has maintained a largely pro-cryptocurrency stance during his election campaign.

However, a series of polls released in delayed August showed Harris with a slight lead over Trump, especially after she was officially nominated as the Democratic presidential candidate.

Cryptocurrency Price Today: Altcoins Regain Some Ground, CPI Expected

Broader cryptocurrency prices tracked Bitcoin’s rebound. The world’s No. 2 cryptocurrency rose 2.1% to $2,344.98.

and rose by 1-5%, while among meme tokens they rose by 7.7%.

Attention has turned to upcoming U.S. inflation data due on Wednesday, which could provide novel clues about interest rates.

The reading came just a week before the central bank is widely expected to cut interest rates by 25 basis points.