Bitcoin soars past $65k following Fed report and influx of ETF funds
Bitcoin’s price has experienced a significant surge, surpassing $65,000, following a drop below $57,000 last week. At the time of writing, Bitcoin’s price has fallen slightly to $63,500, according to CoinMarketCap data.
CoinMarketCap also reports that Bitcoin’s dominance in the market has regained some ground, with its market capitalization accounting for 54.8% of the total market capitalization of all cryptocurrencies.
The Fear and Greed Index, another indicator of market sentiment, has risen by two basis points in the past 24 hours, suggesting a slightly more positive outlook among investors.
The recent rise in Bitcoin’s price can be attributed to several factors. Firstly, the U.S. labor market report, released on May 3, played a significant role in boosting Bitcoin above $60,000. The report shifted expectations of a key interest rate cut by the Federal Reserve from November to September, which positively impacted the cryptocurrency market.
Additionally, investors have been steadily withdrawing funds from Bitcoin spot ETFs since last month. However, this negative trend came to a halt on May 3 when spot Bitcoin ETFs saw a significant inflow of $378 million. In total, inflows into BTC ETFs since January have exceeded $11.5 billion.
Furthermore, the trading of spot ETFs for Bitcoin and Ethereum (ETH) in Hong Kong on April 30 has contributed to the wider acceptance of cryptocurrencies. Although these ETFs have lower trading volumes compared to their American counterparts, their presence in the Asian market is seen as a positive development.
Overall, Bitcoin’s price surge and the positive market indicators suggest a growing confidence in cryptocurrencies, fueled by various factors such as economic reports and the expansion of ETFs in different markets.
