The price of Bitcoin saw a minor increase on Tuesday, hovering within a trading range that has been established over the past couple of months. Despite a recovery in capital flows into crypto investment products, the movement in price was minimal. Bitcoin rose by 2.5% in the last 24 hours, reaching $62,498.6 by 01:05 ET.
Data from digital assets manager CoinShares revealed that crypto investment products received inflows totaling $130 million in the week leading up to May 12. The majority of these inflows were directed towards the U.S., with the launch of spot Bitcoin exchange-traded funds in Hong Kong also contributing to the influx of capital. Despite these improvements, trading volumes in crypto investment products remained low, signaling a subdued market compared to the peak in March.
Bitcoin has been trading within a tight range of $60,000 to $70,000 for the past two months. Various factors such as concerns over interest rates, regulatory uncertainty, and declining interest in ETFs have limited significant price movements. Even the much-anticipated halving event failed to generate substantial market excitement.
Other cryptocurrencies joined Bitcoin in its upward trajectory on Tuesday. Ethereum, the second-largest token, rose by 1.8% to $2,936.00, while Solana and XRP experienced gains of 6.5% and 3% respectively. Memecoins like Dogecoin and PEPE also saw increases following a rally in meme stocks such as GameStop Corp and AMC Entertainment Holdings Inc on Wall Street.
Despite the positive movements, the overall crypto market remained subdued as investors awaited key U.S. inflation data scheduled for release later in the week. The producer price index data was set for Tuesday, with the consumer price index data following on Wednesday. These figures are expected to influence the outlook for U.S. interest rates, with concerns lingering over the possibility of prolonged high rates.
While Bitcoin experienced a slight uptick in price, significant market movements were limited by various factors including regulatory uncertainties and declining trading volumes. The anticipation of key U.S. inflation data added to market speculation, keeping overall prices subdued. Investors will be closely watching the upcoming data releases for cues on the future direction of the market.