Bitcoin steadies near record highs as ETF inflows surge

Bitcoin price fell slightly on Thursday, steadying after breaking out of an over two month trading trough as weak U.S. economic data fueled expectations

Bitcoin price edged down on Thursday, pausing after breaking out of a two-month trading trough as weak U.S. economic data fuelled expectations that the Federal Reserve will cut interest rates.

Bitcoin was down 0.5% in the past 24 hours to $70,834.5 by 01:30 ET (05:30 GMT). The token steadied after breaking out of a $60,000 to $70,000 trading range this week, ending a trough it had fallen into since mid-March.

Bitcoin near record highs as ETF inflows surge

The world’s biggest cryptocurrency was now about $3,000 away from a record high hit in March, benefiting from weakness in the dollar as traders priced in interest rate cuts by the Fed.

U.S.-listed spot exchange traded funds of the token saw a spike in inflows this week, bringing total year-to-date inflows to about $15 billion. Spot Bitcoin ETFs also saw four straight weeks of inflows in May.

The approval of spot Bitcoin ETFs in U.S. markets was a key point of support for the token this year, with Bitcoin hitting a record high on the back of increased institutional inflows.

This trend appeared to be gaining momentum once again, especially in the face of lower U.S. interest rates, which present a more accommodative environment for crypto markets.

Crypto price today: Altcoins mixed, rate cuts in focus

World no.2 crypto Ether rose 1.6% to $3,850.43, remaining close to recent two-month highs as the token also benefited from hype over a spot Ether ETF.

The Securities and Exchange Commission had in May approved major U.S. exchanges to list the spot ETFs, and is now set to engage with fund managers over the approval of the products.

Broader altcoins were mixed, but were sitting on gains this week as a swathe of weak U.S. economic data saw traders increase their bets on a September rate cut.

SOL, ADA and XRP fell between 0.2% and 0.6%, while among memecoins, SHIB and DOGE fell 0.4% apiece.

A rate cut by the Bank of Canada on Wednesday, and anticipation of a widely expected rate cut by the European Central Bank on Thursday also drummed up optimism over lower interest rates.