Investing.com-- Bitcoin price rose in Tuesday trading, holding above key levels and aiming for record highs amid anticipation of the upcoming halving, despite signs of influx Capital outflows and sluggish on-chain activity suggest that the token's stellar bull run may be slowing.
Bitcoin was trading up 4.5% over the past 24 hours at $70,548.10 at 01:03 ET (05:03 GMT). The world's largest cryptocurrency is currently about 3,000 USD away from its record high in early March.
The relative strength of the dollar, in the face of many other signs of US and Federal Reserve inflation, has limited the token's gains.
But Bitcoin has recovered strongly from lows of around $60,000 reached last week, largely in anticipation of the halving, which will see the supply of new tokens drop by 50%. The event is expected to take place sometime in April with the creation of block number 740,000.
Data from digital asset management firm CoinShares showed on Monday that digital asset investment products, such as exchange-traded funds, saw near-record high outflows. $1 billion in the week to March 23.
Of the outflows, the majority were driven by traders exiting Grayscale products, especially the Grayscale Bitcoin Trust ETF (NYSE:{1210189|GBTC}}). The total capital outflow from Bitcoin also amounted to about 904 million USD.
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