Bitcoin's bullish run continues as it hits $70,000 mark

Bitcoin ETFs surge amidst imininent US Federal Reserve cuts
An undated image of the Bitcoin logo. — Pixabay
An undated image of the Bitcoin logo. — Pixabay

The crypto market was on its toes on Tuesday as Bitcoin surpassed the $70,000 mark. A risky appetite and inflows into the US Spot bitcoin ETFs have driven the surge.

Analysts forecast new highs this week if US economic data continues to make a case for Federal Reserve cuts.

Rajagopal Menin, Vice President of WazirX talked of the bullish sentiment in the market, he said: "Bitcoin could reach new highs this week if weak U.S. economic data continues to emerge, supporting the case for two Federal Reserve rate cuts this year."

Current economic data indicates a slowdown in manufacturing and construction spending in the US, despite a slight uptick in the job market, leading to what is expected to be a maintained Federal Reserve interest rate for the next couple of months, followed by a cut in September.

The current inflows, amounting to an astounding $887 million are the second largest in Bitcoin ETF history, mainly powered through by, BlackRock, Fidelity Wise and ARK 21Shores.

Confidence in Bitcoin ETFs is growing, besides the US, transactions have also surged in Hong Kong and Australia. Menon added: "With long-term holders ending their sell-off, Bitcoin exchange funds saw net inflows of $148 million last week, while Ethereum attracted $33.5 million."

The Coinswitch Desk, in highlighting the continued bullish sentiment in the market, acknowledged Bitcoin’s positive net inflows for the past 15 consecutive days.

Shivam Thakral, CEO of BuyUcoin emphasised the role of institutional investors, "The spot ETFs have added $2.4 billion in assets over the past month. The strong demand from institutional investors is driving the Bitcoin prices currently and positive macroeconomic factors will help the crypto market to sustain the momentum in the coming weeks," he stated.

"BlackRock’s iBit now holds over $20 billion in assets under management, with $2.4 billion added in the last month alone, making it the third largest inflow in the entire ETF market," the report stated.

Market movements

The Bitcoin surge has had a ripple effect across the crypto market. Binance’s native token, BNB reached an all-time high after gaining 11% following CEO CZ’s jail sentence in California.

Ethereum, while certainly experiencing an uptick has remained down low, hovering around $3,800. Regardless, most altcoins now stand at a positive trajectory.