The price of bitcoin has recovered slightly, thanks to positive flows of funds into spot bitcoin exchange-traded funds for four days in a row. However, it still continues to trade in the range of $60,000 to $70,000 over the past two months, as there have been no catalysts for growth amid a cautious investment mood, UNN reports with reference to Investing.com.
Bitcoin rose by 0.7% to $66,476.7. Over the past seven days, bitcoin has shown significant growth, recovering by about 8% from a low of $60,000 last week, in part due to the weakness of the dollar amid signs of declining inflation in the United States.
Some Consumer Price Index (CPI) data hinted at an increased likelihood that the Federal Reserve (Fed) may cut interest rates in September, which is positive for speculative assets such as bitcoin and other cryptocurrencies. However, this optimism has recently diminished, limiting bitcoin's gains following remarks from several Fed officials who argued that the central bank needs more evidence of a sustained decline in inflation.
In particular, members of the Fed's policy committee argue that more than a one-month decline in inflation is needed to plan for rate cuts. Their remarks led to a stronger dollar and halted the rally in most risky assets. In addition to the uncertainty of US interest rates, investor sentiment towards cryptocurrencies has also been tempered by fears of new regulatory restrictions on the industry.
Cryptocurrency prices rose today, with altcoins such as Ethereum, Solana, and XRP rising by 3.3%, 3.8%, and 1.7%, respectively, following the rise of bitcoin.
