The price of benchmark cryptocurrency bitcoin has risen to $56,000, much higher than the last week’s low of $45,000 and has renewed hope in crypto investments. The world’s largest cryptocurrency by market capitalization has seen a 3. 4% has been raise over the last 24 hours reaching $56,715. 3 current and up to 01:15 ET. This upward phenomenon may be of relief to investors especially after watching Bitcoin drop to lows of $52,000 in recent days due to other market issues.
The rebound is mainly due to cost buying, as institutional purchase at a cheaper price was visible on the share price drop. However, the optimism is a bit tamed by inflation expectation in the U. S that is due this week, which perhaps, may alter market direction. However, as seen from the below chart, fresh data from CoinShares suggests that the crypto markets witnessed heavy outflows in the tune of $726mln in the last one week, which makes it one of the largest weekly outflow since March.
This outflow trend is suggestive of the fact that institutional investors are still skeptical and many of them have gone ahead to raise their short Bitcoin exposure. The trend affected the altcoin market most as most of the digital currencies went through massive sell-offs. Pension funds in the developed world hence shifted their investment out of the developing countries, this according market analysts who attributed this to perceptions of decelerating economic growth and expectation of a smaller rate cut by the Federal Reserve, and the global risk aversion sentiment that dominated global financial markets.
Today’s crypto market can be characterized as frozen, commented Kristian Haralampiev, Structured Products Lead at Nexo, also, he cited lower trading activity and turnover in the past weeks. He also observed that current speculation is shifting differently for Ethereum and Solana, though close, with a slight inclination towards Solana market which hedges for prospects of a gain.
The crypto community is eagerly waiting for this tonight’s U. S. presidential debate featuring Donald Trump and Kamala Harris. As we noticed Trump during his campaign was positive towards cryptocurrencies hence any signal that the candidate is leading could likely result into higher prices of cryptocurrencies. But last surveys show that Harris is still leading with a small margin although she was officially nominated to be the presidential candidate of the Democratic party.
Following Bitcoin, which again holds the position of recovery, all other cryptocurrencies are also recovering now. Second biggest crypto-currency Ethereum has increased of 2. 1% to $2,344. 98. Some of the other tokens that have appreciated are Solana (SOL) x, Ripple (XRP), Cardano (ADA), Polygon (MATIC), which have recorded between 1% and 5% gains. Especially, the meme token Dogecoin (DOGE) has performed very well as it has increased by 7. 7% to its value.
The attention is now turned towards the inflation rate in the U. S consumer price index due to be released in the market on Wednesday. This is believed to help shed light into possible future movement of interest rates especially given the fact that the Federal Reserve is due to meet next week. It is generally believed that the next move will be a 25 basis point reduction in interest rates, to which the cryptocurreny market could react drastically.
The cryptocurrency market is operating in this nebulous period and investors and enthusiasts are following these activities focusing that the next few days will determine the future of crypto in the following months.
