Bitcoin price has shown slight growth on Tuesday, but it continues to remain within a trading range that has been established for the past couple of months. Despite the recovery in capital flows into crypto investment products, the overall price action has been minimal.
Even though there were some inflows into crypto investment products, particularly spot Bitcoin exchange-traded funds, the overall trading volumes remained low. CoinShares data indicated that there were inflows totaling $130 million in the week up to May 12, with a majority of these inflows directed towards the U.S. The launch of spot Bitcoin ETFs in Hong Kong also contributed to these inflows, but they failed to generate significant trading activity.
Bitcoin has been consolidating in a narrow trading range between $60,000 and $70,000 for the past two months. Various factors such as concerns about interest rates, regulatory uncertainties, and the hype around ETFs have not led to significant price movements. Even the halving event did not have the anticipated impact on the token.
Apart from Bitcoin, other cryptocurrencies also experienced slight gains. Ethereum rose by 1.8% to $2,936.00, while Solana and XRP saw increases of 6.5% and 3% respectively. Memecoins, like Dogecoin and PEPE, witnessed some better gains in line with the rally in meme stocks like GameStop Corp and AMC Entertainment Holdings Inc on Wall Street.
Crypto prices, in general, have remained subdued as investors await key U.S. inflation data. The producer price index inflation data is set to be released later on Tuesday, followed by the consumer price index inflation data on Wednesday. These readings are expected to influence the outlook for U.S. interest rates and add to concerns about prolonged high rates.
While there have been some positive developments in terms of capital inflows into crypto investment products, the overall market remains stagnant. Bitcoin’s lack of significant price movement, coupled with regulatory uncertainties and concerns about interest rates, have kept the market in a state of anticipation. All eyes are now on the upcoming inflation data releases and how they will impact the cryptocurrency market moving forward.