Bitcoin Surges Above $70,000 Despite ETF Outflows, Market Remains Bullish
Bitcoin has soared past $70,000, unaffected by recent outflows from U.S. exchange-traded funds (ETFs). The cryptocurrency climbed 7.1% to a week-high of $70,816, with other digital assets like Ether, Solana, and Dogecoin also registering significant gains. Despite nearly $900 million exiting ETFs, including those from Grayscale, BlackRock, and Fidelity, the market exhibits strong buying interest. This bullish sentiment continues to fuel the rally, even as ETF demand fluctuates and related stocks like MicroStrategy and Coinbase see notable increases.
Gold Steady as Market Awaits U.S. Inflation Data; Oil Gains on Supply Concerns
Gold prices remained in a narrow range Tuesday, with investors’ attention on the upcoming U.S. inflation data, potentially influencing the Federal Reserve’s rate cut decision. The market is in a consolidation phase, awaiting the PCE Index for cues on disinflation, which could boost gold’s appeal. Meanwhile, oil prices are set for a second consecutive day of gains, spurred by expectations of reduced supply due to Russian production cuts and geopolitical tensions in the Middle East, as noted by ANZ analysts.
Dollar Weakens Amid Market Focus on U.S. Inflation Data and Global Rate Outlook
The U.S. dollar is drifting lower Tuesday, impacted by profit-taking and a stronger yen, as Japanese officials defended their currency. With limited economic data, attention shifts to Friday’s U.S. core PCE price index release, expected to remain at 2.8% annually. This inflation measure will be crucial in shaping the Federal Reserve’s interest rate strategy. The global rate landscape, influenced by recent central bank decisions, has also affected the dollar, balancing the Fed’s dovish stance with broader economic growth expectations.