Bitcoin price today
Bitcoin's price experienced a slight dip on Tuesday, remaining within a trading range established over the past two months. Despite a recovery in capital flows into crypto investment products, Bitcoin failed to capitalize on this momentum, slipping 1.3% to $61,856.1.
Limited Impact of Investment Inflows:
While crypto investment products, particularly spot Bitcoin exchange-traded funds, witnessed their first inflows in five weeks, overall trading volumes remained subdued. The $130 million inflows in the week to May 12, mainly directed towards the U.S., failed to significantly impact Bitcoin's price.
Broader Market Performance:
Other cryptocurrencies mirrored Bitcoin's lackluster movement, with Ethereum sliding 1.9% to $2,906.85 and Solana adding 0.4%. Memecoins, however, saw some gains following an overnight rally in meme stocks like GameStop Corp. and AMC Entertainment Holdings Inc.
Anticipation of U.S. Inflation Data:
The crypto market remained subdued as investors awaited key U.S. inflation data. The producer price index inflation data was due later on Tuesday, with the consumer price index inflation data expected on Wednesday. These readings are anticipated to influence the outlook for U.S. interest rates.
Impact of High U.S. Rates on Crypto Markets:
Persistent concerns about high U.S. rates dampened optimism in crypto markets, as they typically thrive in low-rate, high-liquidity environments. The prospect of prolonged high rates poses challenges for crypto assets.
U.K. Election and Crypto Regulation:
Despite anticipation of an upcoming U.K. election, industry stakeholders believe it is unlikely to disrupt progress in crypto regulation. The ruling Conservative Party's measures to establish the U.K. as a crypto hub, including introducing a market bill enabling the regulation of crypto by the Financial Conduct Authority, are expected to continue regardless of the election outcome.
