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That’s why the Bitcoin and cryptocurrency market is rising on Wednesday
Bitcoin price struggled to regain its momentum early in the US session, despite a recovery seen in the broader cryptocurrency market today. Altcoins regained their position in the green today, following last week’s slowdown in trading, and the rally was led by the second-largest cryptocurrency by market capitalization, Ethereum.
However, as of this writing, Bitcoin has also erased some of its losses and remains in the green today.
Reasons why the price of Bitcoin is in trouble
Bitcoin ETF Outflows
The price of Bitcoin has struggled in recent days, after seeing a strong run in recent months. Notably, BTC’s recent rally has been primarily driven by robust inflows into US Spot Bitcoin ETFs, among other reasons, which have bolstered market sentiment.
Furthermore, many other market trends and bullish predictions from market experts have also fueled the confidence in the market. That said, the recent outflow in the Spot Bitcoin ETF in the United States
it weighed on the sentiment.
As an example, Spot Bitcoin ETFs have seen outflows in the last four days, totaling over $700 million. On June 18, outflow was $152.4 million, led by Fidelity’s FBTC which recorded $83.1 million and GrayScale’s GBTC which recorded an outflow of $62.3 million.
Other concerns
This notable outflow has raised concerns among investors, while impacting their risk appetite. Additionally, Fed officials’ conflicting outlooks with their rate plans also continued to weigh on sentiment, despite the latest data showing inflation is cooling in the United States.
That said, investors appear to be shifting their focus to lower prices altcoins for now, while seeking further clarity before entering the market. Furthermore, famous cryptocurrency market analyst Ali Martinez has already stated this before Bitcoin must rise above $66,254 to avoid a potential drop to $61,000.
However, given BTC’s current trading range at $65,000, investors remain cautious. Despite this, BTC traded in the green near the flat line today.
Read also: Bitcoin (BTC) price correction to $60,000 coming according to on-chain data
Why is the cryptocurrency market growing today?
The cryptocurrency market showed upward momentum today despite the decline in the price of Bitcoin, reflecting growing investor confidence in the cryptocurrency. Notably, the altcoin surge was led by Ethereum, as its price surged after the US SEC concluded its investigation into The security state of Ethereum
.
This development comes amid growing optimism about a potential approval of the US Ethereum spot ETF by the US SEC by July 2nd. Bloomberg analyst Eric Balchunas recently unveiled this potential timeline for approval, sparking optimism in the market.
Macroeconomic factors at play
Recent data showing global inflation is cooling has also strengthened market sentiment. For context, the European Central Bank (ECB)
announced the first rate cut in years, boosting investor confidence.
On the other hand, the recent US CPI and PPI data also showed that inflation is cooling. While it still remains above the Fed’s 2% target range, it appears to have cooled in May, raising bets on potential two rate cuts by the Federal Reserve. However, the positive data failed to have any immediate impact on Bitcoin or the broader cryptocurrency market.
Furthermore, the most recent data has shown that the CPI inflation in the UK in May it fell to 2% compared to 2.3% in the previous month. For the first time in about three years, the figure was in line with the BoE’s target range, with investors anticipating a potential rate cut by the central bank.
Bottom line
While Bitcoin has struggled amid the recovery seen in the broader cryptocurrency sector, market experts still remain optimistic about BTC’s long-term trajectory. For example, Ali Martinez, in a recent post on X, shared a potential timeline for Bitcoin to reach its peak citing historical trends.
Martinez said that if Bitcoin’s performance mirrors the movements of the last three cycles, so Bitcoin could reach its peak in December 2024 or October 2025.
However, at the time of writing, Bitcoin price it erased some of its losses and traded hands at $65,300. In the last 24 hours it reached the minimum of 64,066.96 dollars. On the other hand, Ethereum price rose nearly 4% to $3,560, after hitting a 24-hour high of $3,583.88.
Read also: The Sandbox expands the Memecoin chest with the purchase of DOGE, PEPE and SHIB