Bitcoin ETFs Fueling The Fire
Unquestionably the king of cryptocurrencies, still attracts most investment attention. The present market mood is mostly driven by recent launch and continuous inflows into US-approved spot Bitcoin ETFs.Their third-largest inflow day ever, these exchange-traded funds let investors hold Bitcoin without personally holding the digital commodity, seen $890 million come in on June 4th alone.
Ethereum Shines Bright, Altcoins Show Promise
Although Bitcoin steals front stage, , the second most valuable cryptocurrency, is also running really well. Last week, Ethereum funds came in around $70 million, their highest weekly since March 2024.
Coin Shares ascribes this good influx to investor expectation about the forthcoming US launch of spot Ethereum ETFs. Approval of these ETFs could provide major and help to further validate the Ethereum ecosystem.
With inflows of $1.4 million and $1.2 million respectively, altcoins including Fantom and XRP are also seeing a comeback in investor interest outside of the top two coins. This more general market involvement points to a possible comeback of investor confidence all throughout the crypto scene.
They blame weaker-than-expected macroeconomic data in the US for this change in attitude since it raises expectations for a future monetary policy rate reduction.
Crypto Price Stagnation, Economic Uncertainty
Though investment inflows have surged, the price of cryptocurrencies has not shown a commensurate appreciative change. There are various reasons for this discrepancy, including residual investor doubt about the course of US economic policies going forward.
Featured image from Vecteezy, chart from TradingView