Investing.com – Bitcoin’s price stabilized on Tuesday, hovering just below key levels, as a weakening dollar amid speculation about potential Federal Reserve interest rate cuts sparked some inflows into cryptocurrency markets.
rose 0.8% in the last 24 hours to $69,049.3 by 01:50 ET (05:50 GMT). The world’s largest cryptocurrency was currently about 2% away from breaking the $60,000 to $70,000 trading range seen since mid-March.
However, it is unknown whether the token will be able to consistently stay above $70,000.
Bitcoin capital inflows escalate in May
Data from digital asset manager CoinShares showed on Monday that digital asset investment products recorded inflows for the fourth straight week in the seven days to June 3.
This brought the total inflow of funds in May to $2 billion.
Bitcoin accounted for the majority of these inflows, while the world’s No. 2 token, Ether, saw increased capital inflows after the Securities and Exchange Commission approved the listing of exchange-traded funds that directly track Ether.
The inflows signaled some improvement in cryptocurrency sentiment after the space was hit by prolonged outflows in April. However, overall trading volume and daily turnover of cryptocurrency investment products continued to remain faint.
Still, more countries were approving spot ETFs tracking cryptocurrencies. A Bitcoin ETF spot appeared in Australia on Tuesday, following a similar phenomenon in Hong Kong last month.
Cryptocurrency Price Today: Interest Rate Cut Bets Offer Some Support
Broader cryptocurrency markets saw some gains this week as appetite for risk-based assets improved amid the prospect of final interest rate cuts from the Federal Reserve.
Poor data from the US made investors escalate the number of supporters of the September interest rate cut. Lower rates bode well for risky speculative assets like cryptocurrencies.
Gains in broader cryptocurrency markets followed Tuesday after speculation about interest rate cuts pushed prices to two-month lows.
World no. 2 fell 1.4% to 3,762.49, reflecting profit taking after a keen rally in May.
and increased by approximately 0.4% each. Among memecoins, and fell 4% and 1.6%, respectively, also seeing profit-taking after powerful gains in May.
