Bitcoin Price Surges Above $61,400 as U.S.-Spot ETFs See Strong Inflows
Bitcoin price climbed above $61,400 early Tuesday, driven by strong inflows into U.S.-spot ETFs, which recorded their second-highest inflow in August. Bitcoin ETFs saw net inflows of over $61 million, the highest since the $192 million inflow on August 8. Ether prices also jumped by as much as 4% as investors looked for possible signals of upcoming rate cuts from the Federal Reserve later this week.
Market attention has turned to the release of the Fed's July meeting minutes on Wednesday and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday. Despite media speculation and FOMO theories, the real value of Bitcoin lies in its long-term position as a hedge and store of value, according to Stefan Godly, Venture Studio Co-Founder.
The cryptocurrency market received a boost after a tweet from Tron’s founder, Justin Sun, hinted that China might lift its ban on Bitcoin and other crypto assets. China’s Supreme Court and public prosecutor have updated their interpretation of the nation’s Anti-Money Laundering laws, officially recognizing “virtual asset” transactions for the first time.
State Street has partnered with digital asset custodian Taurus as part of its tokenization strategy, with plans to extend to crypto custody once the U.S. regulatory environment improves. The global cryptocurrency market cap jumped by 3.17% to around $2.14 trillion in the last 24 hours, with stablecoins dominating trading volume.
In conclusion, the surge in Bitcoin and cryptocurrency prices is driven by strong inflows into ETFs, positive regulatory developments in China, and increasing adoption by institutional players like State Street. Investors should pay attention to upcoming Fed announcements and the evolving regulatory landscape to make informed decisions about their finances and investments.