Crypto Market Update: Bitcoin Price Slightly Falls as Risk Appetite Weakens
Bitcoin Price Movement:
Bitcoin price fell slightly on Thursday, with little relief seen as risk appetite remained largely frail amid uncertainty over U.S. interest rates. The price of Bitcoin dropped by 0.9% in the past 24 hours to $65,525.6 by 01:49 ET (05:49 GMT), trading well below record highs seen in March.
Market Conditions:
Bitcoin remained rangebound recently due to mixed signals on U.S. interest rate cuts, keeping traders cautious about making significant moves. Anticipation of key U.S. data later in the week also hindered significant trades. The token received minimal support from the weakness in the stock market, which tumbled from recent five-month highs following Federal Reserve Chair Jerome Powell’s ambiguous comments on interest rates.
Fund Flow Analysis:
Other major cryptocurrencies also showed modest movements, with most capital flows heavily favoring Bitcoin. Ethereum dropped 2.4% to a one-month low, while XRP rose 0.3% to $3,301.48. Capital inflows resumed into digital assets, with Bitcoin remaining the top choice for investors.
Market Analysis:
CoinShares analysts noted that although capital inflows increased, ETF activity was slowing down. The approval of spot Bitcoin ETFs earlier in the year drove the token’s rally, leading to record highs. However, the hype over ETF approval seemed to be diminishing, as daily trading turnover fell by 36% from its peak, signaling cooling interest in Bitcoin ETFs.
Overall, the cryptocurrency market continues to face uncertainty, with various factors influencing price movements and investor sentiment. As the market evolves, it will be interesting to see how these dynamics play out in the coming weeks.
