Bitcoin grew by 1.6% per day: now its value is over $63 thousand

The price of bitcoin is relatively stable and is holding near the bottom of the trading range set last month. Investors continue to sell cryptocurrency assets, in particular those registered in the United States, UNN reports with reference to Investing.com.

The launch of a Bitcoin ETF in Hong Kong did not cause joy in the market as investors waited to see how cryptocurrency consumption in Asia would react. Capital markets in Hong Kong are smaller than in the US, so the reaction was limited.

The price of bitcoin rose by 1.6% over the past day to $63,423. Reports show that capital has been flowing out of cryptocurrency investment products for the third week in a row, amounting to $345 million, the highest since March.

In particular, net outflows of bitcoin increased to $423 million due to weakening interest in spot ETFs in the United States that were launched earlier this year. Although some altcoins received capital inflows, this was to compensate for the bitcoin outflows. Institutional investors remain cautious about bitcoin after the launch of ETFs earlier this year.

Six spot ETFs on Bitcoin and Ethereum showed gains during their debut on the Hong Kong markets on Tuesday, indicating some interest in cryptocurrencies. However, it is difficult to predict what impact this will have on cryptocurrency prices, given that Hong Kong's capital markets are much smaller than their US counterparts.

According to the Hang Seng index, the crypto market has bounced back by 20% from the five-year lows reached in January, with general sentiment remaining unstable due to weak economic conditions on the mainland.

Hong Kong crypto ETFs are effectively the main means of accessing cryptocurrencies for local and Chinese investors after China banned all cryptocurrencies in 2021. However, cryptocurrency prices remain little visible today as concerns about a possible interest rate hike by the US Federal Reserve increase.

The Fed is expected to leave rates unchanged, but Chairman Jerome Powell may provide signals that indicate a possible rate hike, especially after unexpectedly high inflation.

This has not attracted investors to cryptocurrencies, given that the sector typically thrives on highly speculative markets driven by low interest rates.

Recall

Bitcoin and ether prices are declining due to investors' fears of stagflation, a scenario of high inflation and low economic growth in the United States, which poses risks to high-risk assets such as cryptocurrencies.