Investing.com– Bitcoin price steadied on Tuesday, hovering just below key levels as weakness in the dollar, amid speculation over potential interest rate cuts by the Federal Reserve, sparked some flows into crypto markets.
Bitcoin rose 0.8% in the past 24 hours to $69,049.3 by 01:50 ET (05:50 GMT). The world’s largest cryptocurrency was now about 2% away from breaking out of a $60,000 to $70,000 trading range seen since mid-March.
But whether the token could consistently maintain levels above $70,000 remained to be seen.
Bitcoin capital inflows pick up in May
Data from digital asset manager CoinShares showed on Monday that digital asset investment products saw inflows for a fourth straight week in the seven days to June 3.
This brought total inflows in May to $2 billion.
Bitcoin commanded a bulk of these inflows, while world no.2 token Ether saw increased capital inflows after the Securities and Exchange Commission approved the listing of exchange-traded funds that directly track Ether.
The inflows signaled some improved sentiment towards crypto, after the space was hit with extended outflows through April. But overall trading volumes and daily turnover in crypto investment products still remained weak.
Still, more countries were seen approving spot ETFs tracking cryptocurrencies. A spot Bitcoin ETF went live in Australia on Tuesday, following a similar phenomenon in Hong Kong last month.
Crypto price today: rate cut bets offer some support
Broader cryptocurrency markets clocked some gains this week, as appetite for risk-driven assets improved on the prospect of eventual rate cuts by the Federal Reserve.
Weak U.S. purchasing managers index data saw traders ramp up bets on a September rate cut. Lower rates bode well for risk-heavy, speculative assets such as cryptocurrencies.
Gains across broader crypto markets came on Tuesday after speculation over interest rate cuts dragged the dollar to two-month lows.
World no. 2 token Ether fell 1.4% to 3,762.49- seeing some profit taking after rallying sharply through May.
SOL and XRP rose about 0.4% each. Among memecoins, SHIB and DOGE fell 4% and 1.6%, respectively, also seeing some profit-taking after strong gains in May.
