$Bitcoin experienced a slight decline on Thursday, stabilizing after emerging from a trading range lasting over two months, fueled by disappointing #US economic data prompting expectations of interest rate cuts by the #FederalReserve.
Over the past 24 hours, Bitcoin retreated by 0.5% to $70,383 The cryptocurrency found its footing after breaking free from a trading range of $60,000 to $70,000 earlier this week, marking the end of a downward trend that began in mid-March.
Bitcoin is now benefiting from the weakening $dollar as investors factor in potential Fed interest rate cuts.
Spot exchange-traded funds (#ETFs) for Bitcoin listed in the US witnessed a surge in inflows this week, pushing year-to-date inflows to around $15 billion. Additionally, spot #BitcoinETFs recorded four consecutive weeks of inflows in May. The approval of spot Bitcoin ETFs in US markets has provided significant support to the #cryptocurrency this year, with institutional inflows driving Bitcoin to new highs.
This trend appears to be gaining momentum once more, particularly in light of lower U.S. interest rates, which create a more favorable environment for the crypto market.
In the broader cryptocurrency market, $Ethereum, the second-largest cryptocurrency, increased by 1.6% to $3,887, amid excitement surrounding a potential spot Ether ETF. The Securities and Exchange Commission's
#SEC approval in May for major US exchanges to list spot ETFs has paved the way for further developments in the #Ether market.
While other alternative cryptocurrencies (#altcoins) showed mixed performance, many were on track for gains this week due to weak US economic data increasing expectations of a #September #RateCut.
Altcoins such as $SOL, $ADA, and $XRP experienced slight declines ranging from 0.2% to 0.6%, while meme coins like $SHIB and $DOGE fell by 0.4% each.
The recent rate cut by the
#Bank of Canada #BoC on Wednesday, along with anticipation of an impending rate cut by the European Central Bank #ECB on Thursday, has further fueled optimism for lower interest rates globally.