Bitcoin
falls below $62,000 as inflation concerns hold back big bets By Investing.com
Investing.com – The price fell slightly on Tuesday, remaining within a trading range established over the past two months, as the focus remained squarely on U.S. inflation data for further clues on interest rates.
A rebound in capital flows into crypto investment products translated into little price action, even as investment products saw their first inflows in five weeks.
Bitcoin fell 1.3% in the last 24 hours to $61,856.1 at 7:35 a.m. ET (11:35 a.m. GMT).
Bitcoin Fails to Capitalize on Improving Crypto Capital Flows
The world’s largest cryptocurrency has drawn limited support from data showing that crypto investment products – specifically spot Bitcoin exchange-traded funds – have seen 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 most of it going to the US.
The launch of spot Bitcoin ETFs in Hong Kong also generated some inflows.
But despite the improvement in capital flows, global trading volumes in crypto investment products have remained quite underwhelming, remaining well below the highs seen in March when Bitcoin reached its all-time peak.
The world’s largest cryptocurrency has settled in a tight trading range between $60,000 and $70,000 over the past two months as a mix of interest rate fears, regulatory uncertainty and waning ETF hype spurred little action. real in prices. The much-awaited token halving event also landed with a thud.
Crypto Price Today: Altcoins See Mixed Performance as Inflationary Distress Limits Optimism
Broader crypto markets also tracked Bitcoin’s rally on Tuesday. The world’s No. 2 token fell 1.9% to $2,906.85, while it rose 0.4% and remained stable.
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Memecoins posted some better gains, tracking an overnight rally in meme stocks such as GameStop Corp (NYSE:NYSE:) and AMC Entertainment Holdings Inc (NYSE:NYSE:) on Wall Street. rose more than 5%, while the newer memecoin PEPE added more than 20%.
Still, overall cryptocurrency prices remained quite subdued in anticipation of key US inflation data this week.
inflation data will be released later on Tuesday, while the most closely watched inflation data will be released on Wednesday.
Both readings are expected to take into account the outlook for US rates and come amid lingering concerns that rates will remain elevated for longer.
The prospect of high rates in the US bodes ill for cryptocurrency markets, as they generally thrive in low-fee, high-liquidity markets.
UK elections unlikely to affect country’s regulatory plans for crypto
An upcoming UK election is unlikely to derail progress on crypto regulation, industry stakeholders said in an interview with CoinDesk.
Although the election date has not been announced, it is expected to take place later this year.
The ruling Conservative party, in power since 2010, has introduced several crypto measures, aiming to make the UK a crypto hub by 2022. They have introduced a market law that allows the Financial Conduct Authority (FCA) to regulate crypto as a financial activity.
The Conservatives have also promised legislation for stablecoins and staking before the next election, a goal many believe is achievable.
Adam Jackson, policy director at Innovate Finance, said the country needs secondary legislation to formally task the FCA with regulating cryptocurrencies, including stablecoins.
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“This is what the government said it would do,” Jackson told CoinDesk. “We have not heard otherwise why this is not viable. Therefore, all things being equal, they should have these powers at the time of national elections.”