Aug 13 2024: Bitcoin’s price saw a modest increase on Tuesday, rising to $59,305.3, as investors capitalized on recent declines with some bargain buying. Despite this slight rebound, risk sentiment remained cautious ahead of a series of crucial U.S. economic indicators this week.
Bargain Buying Boosts Crypto Investment
Capital flows data indicated that investors were drawn to crypto investment products last week, with notable inflows into Ether but only modest interest in Bitcoin. The recent downturn in crypto markets led to increased buying, although sentiment was dampened by the lack of discussion on crypto regulations during a recent conversation between Republican presidential candidate Donald Trump and Tesla CEO Elon Musk on X.
Musk-Trump Talk Falls Short on Crypto
The conversation between Musk and Trump disappointed some market participants who had hoped for renewed support for cryptocurrencies from the Republican nominee. While Trump has shown interest in crypto, even speaking at a Bitcoin conference last month, his recent discussion with Musk did not address cryptocurrency, leading to a temporary dip in Bitcoin’s price to $58,000.
Institutional Demand Remains Limited
Data from Coinshares revealed that while Ether investment products experienced significant inflows of over $155 million, Bitcoin saw only $13 million in new investments. The recent launch of spot Ether ETFs in the U.S. had a muted impact, contributing to the rebound in Ether inflows. Bitcoin’s price has been volatile, ranging between $50,000 and $60,000 for much of the year.
Altcoins and Inflation Data
Most altcoins tracked Bitcoin’s gains on Tuesday, with the second-largest cryptocurrency, Ether, climbing 3.8% to $2,651.26. Other tokens, including SOL, XRP, and ADA, rose between 0.2% and 1.6%, while meme token DOGE increased by 2.9%.
Markets are now focused on the upcoming U.S. consumer price index (CPI) data, scheduled for release on Wednesday. This data is expected to provide further insights into the Federal Reserve’s potential plans for interest rate cuts, influencing overall market sentiment.