Bitcoin (BTC) reached $61,000 on Tuesday morning after spending the past week fluctuating between $56,000 and $58,000 this was due to massive Bitcoin ETF inflows. This upward push from $58,000 marked a strong recovery for Bitcoin, which had been under heavy selling pressure recently.
The market cap of cryptocurrencies grew more than 3% in the past day, reaching $2.14 trillion. Trading activity in the cryptocurrency market also increased, with a 29% increase, bringing the total to $62.28 billion within the same time frame.
See Also: US Bitcoin ETFs Witnesses $146 million Outflows In A Day
Bitcoin ETF Inflows
Bitcoin’s rise was boosted by solid Bitcoin ETF inflows. The crypto market has had a rough time this month, even as the global stock markets reached new highs.
On August 5, major cryptocurrencies saw their steepest drop since November 2022, driven by worries about the global economy and a large reversal in the yen carry trade. This caused Bitcoin’s price to fall to $49,000, spreading fear in the crypto market.
However, Bitcoin has since recovered and is now approaching the $61,000 level again, bringing more positivity for the market. A key factor behind Bitcoin’s recent rise is the strong U.S. Bitcoin ETF inflows
On August 19, Bitcoin ETF inflows got to $62 million in new funds, marking the third consecutive day of positive inflows. These ETFs also received $36 million and $11 million on August 16 and August 15, respectively, showing growing interest in Bitcoin-focused investments.
On August 19, BlackRock’s iShares Bitcoin Trust ETF (IBIT) pulled in $92.68 million, while Grayscale’s GBTC remained largely unchanged. Fidelity’s FBTC also recorded a modest inflow of $3.87 million.
On the other hand, Bitwise’s BITB ETF saw the largest outflow, with $25.72 million being withdrawn over the past day. As August progresses, the inflows and outflows in Bitcoin ETFs present a mixed picture.
This month has experienced $320 million in outflows, although April had a worse performance with $345 million leaving the market. Despite large inflows of $2.1 billion and $3.2 billion in May and July, Bitcoin’s momentum appears to have slowed down.
The political situation in the United States may also be contributing to this. As Donald Trump and Kamala Harris compete for the presidency, the crypto market remains on edge.
Harris has yet to clarify her views on cryptocurrencies, leaving traders unsure of what might happen next. In the last 24 hours, Bitcoin’s price has increased by over 4%, setting it up to potentially surpass the $62,000 mark.
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