Bitcoin (BTC) price surged today, breaking above $58,000, marking a significant recovery after a brief dip ahead of the release of U.S. Consumer Price Index (CPI) data. The surge came amid broader market sentiment and new inflows into cryptocurrency exchange-traded funds (ETFs).
Besides Bitcoin, other digital assets are also seeing a shift as investor sentiment shifts in response to the latest economic developments. In addition, the total cryptocurrency market has increased by 2.24% over the past day.
Bitcoin spikes after CPI data
With inflation coming in at a lower-than-expected 2.5%, the latest CPI report suggests a potential easing of tight monetary policy. Typically indicative of lower inflation, falling CPI helps ease pressure on central banks—like the Federal Reserve—to raise interest rates.
Because it typically inspires investor confidence and risk-taking, lower inflation often creates a favorable environment for risk assets like Bitcoin. As seen in BTC’s recent price surge, this dynamic often leads to more liquidity flowing into the market.
With a trading volume of $36.9 billion, Bitcoin’s value has increased by 2.65% in the past to $57,961.01 at press time. This comes after a 1.53% increase over the past week, further highlighting the renewed optimism in the cryptocurrency market.
ETF Inflows Fuel Bitcoin Growth
One of the major factors contributing to Bitcoin’s price surge is the recent inflow into Bitcoin ETFs. According to Lookonchain, the Bitcoin ETF has seen a net inflow of 771 BTC, worth approximately $44.32 million.
Update September 11: 1#BitcoinETFNetFlow: +771 $BTC(+$44.32M#Fidelityinflowed 1,093 $BTC($62.82M) and now holds 172,717 $BTC($9.93B). #EthereumETFNetFlow: -1,591 $ETH(-$3.72M) #Grayscale(ETHE) outflowed 9,752 $ETH($22.77M) and now holds 1,750,498… pic.twitter.com/LK0JqvDk79
— Lookonchain (@lookonchain) September 11, 2024
Fidelity’s Bitcoin ETF alone saw an inflow of 1,093 BTC, bringing its total holdings to 172,717 BTC. This surge in ETF investments indicates growing institutional interest, which typically leads to increased market activity and increased demand for Bitcoin.
While Bitcoin benefited from this inflow, the Ethereum ETF saw outflows of 1,591 ETH, showing a different market trend for the second-largest cryptocurrency by market capitalization. Grayscale’s Ethereum Trust reported outflows of 9,752 ETH, worth about $22.77 million, showing a contrast between the two leading cryptocurrencies.
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UK Introduces Cryptocurrency Bill to Boost Adoption
In a bid to clarify the legal status of crypto assets, the UK has introduced a new bill in a legislative act. Under the plan, Bitcoin and other cryptocurrencies would be classified as personal property, a development that could accelerate the adoption of digital assets in the country.
This legal clarification is seen as a good start to bringing cryptocurrencies into the larger financial system, which could in turn attract more institutional investors to the market.
BREAKING UK INTRODUCES NEW BILL IN PARLIAMENT TO CLARIFY THE LEGAL STATUS OF CRYPTOCURRENCIES. UNDER THIS LAW, BITCOIN AND OTHER CRYPTOCURRENCIES WILL BE CONSIDERED PERSONAL PROPERTY. GIGA BULISH TO BE APPLIED pic.twitter.com/A7iJco8Y53
— Ash Crypto (@Ashcryptoreal) September 11, 2024
Ash Crypto tweeted, expressing a particularly strong bullish outlook for Bitcoin and the cryptocurrency market in general. They emphasized that legal recognition of cryptocurrencies as private assets brings regulatory clarity, which is likely to boost market participation and increase investor confidence.
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