Bitcoin Price Rises as Bargain Buyers Step In; Key U.S. Inflation Data Awaited
Bitcoin’s price saw a rebound on Tuesday, with bargain buyers stepping into the cryptocurrency markets after steep losses last week. However, the rebound was limited by anticipation of key U.S. inflation data. Bitcoin rose 3.4% to $56,715.3 by 01:1 ET (05:16 GMT).
The recent selldown in crypto markets, driven by concerns over an economic slowdown, saw Bitcoin hitting as low as $52,000. Bargain buying supported the token’s recovery as institutional investors turned averse towards crypto. Crypto markets also witnessed heavy weekly outflows totaling about $726 million, their biggest weekly outflow since March.
Investors were seen increasing short positions on Bitcoin, while altcoins were sold off across the board. The upcoming U.S. inflation data, scheduled for Wednesday, will provide more insights on interest rates. This data comes ahead of a Federal Reserve meeting where a 25 basis points interest rate cut is widely expected.
Crypto markets were also focused on the first presidential debate between Donald Trump and Kamala Harris, with Trump’s pro-crypto stance likely to boost prices if he gains an edge in the race. Altcoins regained some ground, with Ethereum rising 2.1% to $2,344.98. Other major cryptocurrencies also saw gains, with a focus on the upcoming inflation data for further market cues.
In summary, Bitcoin’s rebound, heavy outflows in crypto markets, upcoming U.S. inflation data, and the presidential debate’s impact on crypto prices are key factors to watch for investors in the cryptocurrency space. Understanding these dynamics can help individuals make informed decisions about their finances and investments.