Bitcoin Price Surges Above $61,400 on Strong Inflows Into U.S.-Spot ETFs
Bitcoin’s price soared above $61,400 early Tuesday, fueled by robust inflows into U.S.-spot ETFs, which experienced their second-highest inflow in August. Bitcoin ETFs attracted net inflows of over $61 million, marking the highest figure since the $192 million inflow on August 8. Notably, BlackRock’s iShares Bitcoin Trust led the way with $92 million in inflows, while Bitwise’s Bitcoin ETF saw $25 million in outflows.
Ether prices also saw a 4% increase as investors searched for potential signals of upcoming rate cuts from the Federal Reserve later in the week. With a light economic data calendar, market focus has shifted to the release of the Fed’s July meeting minutes on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
Stefan Godly, Venture Studio Co-Founder, emphasized the long-term value of Bitcoin as a hedge and store of value amidst media-induced FUD and FOMO theories. The cryptocurrency market received a boost following a tweet from Tron’s founder, Justin Sun, hinting at a potential lift of China’s ban on Bitcoin and other crypto assets.
China’s Supreme Court and public prosecutor recently updated their interpretation of the nation’s Anti-Money Laundering laws, officially recognizing “virtual asset” transactions for the first time. Meanwhile, State Street has partnered with digital asset custodian Taurus as part of its tokenization strategy, with plans to expand to crypto custody once the U.S. regulatory environment improves. The global cryptocurrency market cap rose by 3.17% to around $2.14 trillion in the last 24 hours, with stablecoins accounting for 92.43% of the total crypto market’s 24-hour volume.
Dogecoin, Shiba Inu, and SafeMoon experienced bullish momentum, with Dogecoin’s SunPump being the standout performer. Dogecoin, the largest meme coin launched via SunPump, gained traction as Tron’s Pump.fun competitor created by Justin Sun.
In summary, the cryptocurrency market is experiencing significant growth driven by various factors such as institutional inflows, regulatory developments, and market sentiment. Investors should stay informed about key events like the Fed’s upcoming decisions and regulatory changes in major markets like China, as these can impact the value and performance of digital assets.