📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Bitcoin price today: flat at $61k amid regulatory jitters, inflation angst

Published 06/25/2024, 01:51 AM
Updated 06/25/2024, 08:36 AM
© Reuters
DXY
-
BTC/USD
-
XRP/USD
-
ETH/USD
-
DOGE/USD
-
ADA/USD
-
SOL/USD
-
SHIB/USD
-

Investing.com-- Bitcoin remained relatively flat on Tuesday, after declining a day earlier due to a mix of regulatory fears, particularly over U.S. action and German government sales, and broader risk aversion among investors.

The world’s largest cryptocurrency traded unchanged in the past 24 hours at $61,212.1 by 08:30 ET (12:30 GMT). It had fallen as far as $59,215 in overnight trade.

Selling in cryptocurrencies was driven by a storm of different regulatory factors, which, coupled with angst over U.S. interest rates, drove broader prices lower. Crypto investment products were also seen logging two straight weeks of heavy capital outflows. 

Bitcoin price pressured by German sale fears, inflation angst 

Bitcoin was nursing steep losses through the past week amid reports that the German government was selling Bitcoin confiscated from a piracy website. Reports said the German police had sold about 3,000 tokens of the 50,000 initially confiscated. 

Reports of the German sales were accompanied by other reports that the U.S. Commodity Futures Trading Commission was investigating market maker Jump Trading over its crypto trading activities. Jump President Kanav Kariya also said he was leaving the firm. 

The reports added to a broader risk-off sentiment in crypto markets, as traders pivoted into the dollar ahead of key U.S. inflation data due this Friday. PCE price index data, which is the Federal Reserve’s preferred inflation gauge, is widely expected to offer more cues on interest rates this week. 

Rising fears of high rates had battered crypto markets through the past week, and showed little signs of clearing. Strength in the dollar also diminished crypto’s appeal.

Crypto investment products see sustained outflows 

Data from digital asset manager CoinShares showed on Monday that crypto investment products saw outflows totaling about $584 million, with a bulk of these being directed towards U.S. Bitcoin exchange-traded funds. 

Bitcoin products saw outflows of $630 million, while altcoin products saw mild inflows as investors saw recent price slumps as a buying opportunity. 

Crypto price today: Altcoins rise but nurse losses 

Broader crypto prices rose on Tuesday, with major altcoins rebounding from steep losses seen over the past week. 

World no.2 token Ether rose 1.6% to $3,372.49, after relinquishing a bulk of its gains made on hype over a spot Ether ETF.

ADA and SOL climbed 5% and 7%, respectively, while XRP slipped around 0.1%.

Among meme tokens, SHIB and DOGE added 3% and 4.5%, respectively.

Ether ETFs expected to see weaker demand than Bitcoin funds, Bernstein says

In a Monday note to clients, analysts at brokerage firm Bernstein said Ether ETFs are expected to attract similar demand sources as their Bitcoin counterparts, though on a smaller scale.

“ETH should not see as much spot ETH conversion due to the lack of an ETH staking feature in the ETF,” analysts wrote.

They added that the basis trade, which involves buying the spot ETF and selling the futures contract simultaneously, should gain traction over time and contribute to healthy liquidity in the ETF market.

Spot Ether ETFs are nearing availability for U.S. investors following the Securities and Exchange Commission’s (SEC) approval of key regulatory filings from issuers last month.

“ETH as a primary tokenization platform is building up a strong use-case, both for stablecoin payments and tokenization of traditional assets and funds,” the analysts continued.

Ether and other digital assets require a “more improved regulatory regime,” and Bernstein anticipates that the regulatory narrative will improve closer to the U.S. elections, especially with the increasing odds of a Republican victory and Trump’s pro-crypto stance.

Despite recent declines in the crypto markets, the “structural adoption cycle remains intact,” the report noted.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.