Investing.com– The price of bitcoin rose slightly on Tuesday but remained within the trading range established over the past two months as attention focused exclusively on U.S. inflation data for more clues on rates. of interest.
The recovery in capital flows into crypto investment products translated into little price action, even as the investment products recorded their first inflows in five weeks.
It rose 2.5% in the last 24 hours to $62,498.6 at 01:05 a.m. (CET) (05:055 GMT).
Bitcoin holds firm, crypto capital flows improve
The world's largest cryptocurrency received little support from data showing that cryptocurrency investment products, specifically Bitcoin exchange-traded funds, experienced their first weekly capital inflows in five weeks.
Data from digital asset manager CoinShares showed that crypto products saw inflows totaling $130 million in the week to May 12, with the bulk of that heading to the United States.
The launch of spot Bitcoin ETFs in Hong Kong also sparked some inflows.
But despite the improvement in capital flows, overall trading volumes in crypto investment products remained largely dismal, remaining well below the highs seen in March, when Bitcoin hit an all-time high.
The world's largest cryptocurrency settled in a tight trading range between $60,000 and $70,000 over the past two months, as a combination of interest rate fears, regulatory uncertainty and waning ETF hype spurred little real action from the price. The highly anticipated token halving event also landed with a thud.
Crypto Price Today: Altcoins Advance, But Inflation Distress Caps Gains
The broader crypto markets also followed Bitcoin higher on Tuesday. The world's No. 2 token rose 1.8% to $2,936.00, while adding 6.5% and 3%, respectively.
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Memecoins posted some better gains, following an overnight rally in meme stocks like GameStop Corp (NYSE 🙂 and AMC Entertainment Holdings Inc (NYSE 🙂 on Wall Street. rose nearly 10%, while the newest memecoin added more than 20%.
Still, overall cryptocurrency prices remained largely subdued in anticipation of this week's key US inflation data.
Inflation data will be released later on Tuesday, while the more closely watched inflation data will be released on Wednesday.
Both readings are widely expected to influence the outlook for US rates, and come amid lingering concerns that rates will stay high for longer.
The prospect of high rates in the United States bodes poorly for cryptocurrency markets, as they typically thrive in low-rate, high-liquidity markets.
