The Bitcoin (BTC) price has surged today breaking $58,000, marking a notable recovery following a brief dip before the release of the U.S. Consumer Price Index (CPI) data. This rise comes amid broader market movements and fresh inflows into crypto exchange-traded funds (ETFs).
Alongside Bitcoin, other digital assets are witnessing changes as investor sentiment shifts in light of the latest economic developments. Besides, the total crypto market has risen by 2.24% over the past day.
Bitcoin Surges After CPI Data
With lower-than-expected inflation numbers of 2.5%, the latest CPI report indicated possible release from strict monetary policy. Usually indicating lower inflation, a dropping CPI helps to relieve pressure on central banks—like the Federal Reserve—to raise interest rates.
Since it usually inspires investor confidence and risk-taking, lower inflation usually creates a suitable climate for risk assets like Bitcoin. As seen by the recent price spike in BTC, this dynamic usually leads to more liquidity pouring into markets.
With a trading volume of $36.9 billion, Bitcoin’s value rose 2.65% over the past to $57,961.01 at press time. This follows a 1.53% rise during the past week, underlining even more the fresh optimistic attitude in the crypto market.
ETF Inflows Fuel Bitcoin’s Growth
One of the key contributors to Bitcoin’s price surge is the recent inflow into Bitcoin ETFs. According to Lookonchain, Bitcoin ETFs experienced a net inflow of 771 BTC, worth approximately $44.32 million.
Sept 11 Update:10 #Bitcoin ETFsNetFlow: +771 $BTC(+$44.32M)#Fidelity inflows 1,093 $BTC($62.82M) and currently holds 172,717 $BTC($9.93B).9 #Ethereum ETFsNetFlow: -1,591 $ETH(-$3.72M)#Grayscale(ETHE) outflows 9,752 $ETH($22.77M) and currently holds 1,750,498… pic.twitter.com/LK0JqvDk79
— Lookonchain (@lookonchain) September 11, 2024
Fidelity’s Bitcoin ETF alone saw an inflow of 1,093 BTC, bringing its total holdings to 172,717 BTC. This surge in ETF investments suggests growing institutional interest, which often leads to heightened market activity and increased demand for Bitcoin.
While Bitcoin benefitted from this influx, Ethereum ETFs saw outflows of 1,591 ETH, indicating a different market trend for the second-largest crypto by market cap. Grayscale’s Ethereum Trust reported outflows of 9,752 ETH, valued at around $22.77 million, demonstrating a contrasting movement between the two leading cryptos.
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UK Introduces Crypto Bill Boosting Adoption
Aiming at clarifying the legal position of crypto assets, the United Kingdom presented a new bill in a legislative action. Under this plan, Bitcoin and other crypto will be categorized as personal property, a development that might hasten the acceptance of digital assets inside the nation.
This legislative clarification is considered as a good start towards including crypto into the larger financial system. Hence, this possibly draws more institutional investors to the market.
BREAKING UK INTRODUCES NEW BILL IN PARLIAMENT TO CLARIFY LEGALSTATUS OF CRYPTO. UNDER THIS LAW, BITCOIN AND OTHER CRYPTO ASSETS WILLBE CONSIDERED AS PERSONAL PROPERTY.GIGA BULLISH FOR ADOPTION pic.twitter.com/A7iJco8Y53
— Ash Crypto (@Ashcryptoreal) September 11, 2024
Ash Crypto tweeted, expressing a particularly strong bullish outlook for Bitcoin and the broader crypto market. They highlighted that the legal recognition of cryptocurrencies as personal property provides regulatory clarity, which is likely to boost market participation and increase investor confidence.
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