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Bitcoin (BTC-USD) is set to rise 10.9% on a weekly basis, as it continued to be stuck in a narrow range, but was helped by an uptick in ETF inflows.
The cryptocurrency has been stuck in a range, primarily due to a lack of thematic innovations.
“Unlike previous crypto cycles, which had thematic innovations such as ICOs, NFTs, DeFi, GameFi, etc., the current cycle is lacking in terms of a new crypto narrative (and FOMO energy), and the only catalyst was ETF inflows, which is more of a standard flow of funds story rather than story driven,” said Augustine Fan, Head of Insights, SOFA.org
As such, we are seeing more limited follow through on crypto price movements, hence the current headwinds and weak price action over the past few months, Fan added.
The oldest digital currency stuck to a range of $55K-$58K in a week that saw two inflation reports and the U.S. presidential debate.
The crypto-linked stocks fell during the U.S. premarket trading hours as the prospects of crypto-friendly Republican nominee Donald Trump winning the election slid after the presidential debate.
Former President Trump has shown commitment to championing Bitcoin (BTC-USD), including considering designating it as a strategic asset under government stewardship.
BTC was largely unaffected by the August consumer price index, which held steady on a monthly basis as expected, while the core CPI rose more than forecast.
The cryptocurrency climbed to $58K on Thursday, on a day when the broader U.S. markets also rose, amid a tech stocks fuelled rally.
The August wholesale inflation report came on Thursday, with headline and core figures rising more than expected M/M.
“Bitcoin’s extreme volatility suggests it will fall faster and further than other equities in a recession, making now a good time to take profits,” SA analyst Crystal Allen said.
Current market fundamentals, including potential Fed rate cuts and global economic instability, signal a looming recession, which could trigger a massive Bitcoin sell-off, Allen said.
Bitcoin prices rebounded due to increased ETF inflows, ending an 8-day outflow streak, Dean Popplewell said.
Notable News
- Trading platform eToro agreed to pay $1.5M and restrict U.S. customers to trading only a select number of cryptocurrencies in order to settle allegations brought by the Securities and Exchange Commission that it operated as an unregistered broker and clearing agency, the regulator said.
- Brian Armstrong, Co-Founder & CEO of Coinbase Global (COIN), highlighted that one of the greatest obstacles that needs to be addressed for the crypto universe is clear regulation for the entire industry.
- Cryptocurrency asset management firm Grayscale Investments is launching a new closed-end fund in the U.S. that solely invests in the XRP (XRP-USD) token.
- Bitfarms (BITF) said it has rescheduled the special meeting for shareholders to November 6 from October 29.
Bitcoin, Ether prices
Bitcoin (BTC-USD) rise 2.4% to $59.8K at 3:12 pm on Friday. Ether (ETH-USD) up 2.8% at $2.4K.
