The current valuation of bitcoin hovers around $69k today, with some support stemming from interest rate cuts.
On Tuesday, there was a steady rise in the price of bitcoin, which was trading just below critical levels due to the weakening of the dollar and speculations of a potential Federal Reserve interest rate decrease.
By 01:50 ET (05:50 GMT), Bitcoin had increased by 0.8% in the past 24 hours to $69,049.3. The leading cryptocurrency globally was currently 2% away from breaking out of the trading range of $60,000 to $70,000, where it had been since mid-March.
It remained uncertain, however, if the token would maintain consistent support above $70,000.
There was an increase in capital inflows for bitcoin during May. In the week leading up to June 3, there were inflows into digital asset investment products for a fourth consecutive week, as per data published on Monday by digital asset manager CoinShares.
This boosted May's total inflows to $2 billion.
The majority of these inflows were driven by Bitcoin, the second most popular token globally. Following the approval by the Securities and Exchange Commission for the listing of exchange-traded funds that track Ether directly, Ether saw an increase in capital inflows.
After significant surges in the cryptocurrency market during April, the inflows indicated a recovery in sentiment towards the sector. However, daily turnover and total trading volumes for cryptocurrency investment products remained low.
It was evident that more countries were approving spot ETFs linked to cryptocurrency. Tuesday witnessed the approval of a spot Bitcoin ETF in Australia, following a similar development in Hong Kong the previous month.
Today's cryptocurrency prices: speculations of rate cuts provide some support
Broader cryptocurrency markets experienced some gains this week as investors' appetite for riskier assets grew amidst speculation that the Federal Reserve might indeed lower interest rates.
Traders increased their expectations of a rate cut in September in response to weak U.S. jobless claims data. Lower rates are favorable for speculative, high-risk investments like cryptocurrency.
Tuesday saw gains in other major cryptocurrency markets as the dollar fell to levels not seen in two months due to expectations of interest rate cuts.
The second-largest token globally, Ether, saw some profit-taking after a rapid rise throughout May, declining by 1.4% to $3,762.49.
Both XRP and SOL increased by approximately 0.4%. Memecoins SHIB and DOGE experienced significant profit-taking following their strong performances in May, with their respective declines of 4% and 1.6%.
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