Bitcoin’s price has seen an uptick today, driven by renewed interest in Bitcoin ETFs, VanEck’s new Solana ETF application, and expectations of lower inflation data.
Bitcoin’s Recent Price Movement
Bitcoin’s price increased by about 1.5% in the past 24 hours, reaching approximately $61,700 as of June 28. This rise is part of a broader trend in the cryptocurrency market, fueled by positive developments related to Bitcoin exchange-traded funds (ETFs) and VanEck’s recent application for a Solana ETF.
U.S. Investors Flock Back to Bitcoin ETFs
The latest gains in Bitcoin followed three consecutive days of inflows into U.S.-based Bitcoin ETFs, signaling a renewed interest in riskier assets after a period of outflows. As of June 27, these ETFs had $14.44 billion in assets under management, recovering from a low of $14.383 billion three days earlier. At their peak on June 6, these funds held $15.68 billion. Additionally, VanEck’s filing for a new Solana ETF in the U.S. has further boosted market sentiment, with the firm also having a pending application for an Ethereum ETF with the U.S. Securities and Exchange Commission (SEC).
Bitcoin Gains Ahead of PCE Data Release
Bitcoin’s gains today also mirrored similar movements in U.S. stock futures as investors awaited the release of the Personal Consumption Expenditures (PCE) price index for May. Economists surveyed by Bloomberg expect the PCE, which is the Federal Reserve’s preferred inflation measure, to have decreased to an annualized rate of 2.6% from 2.8%. This would be the lowest reading since March 2021 but still above the Fed’s 2% inflation target. A decline in inflation could lead the Fed to cut interest rates in 2024, with bond traders currently seeing a 57.9% chance of a 25 basis point rate cut in September, up from 41.7% a month ago. Lower interest rates tend to increase investor appetite for riskier assets like cryptocurrencies and stocks, contributing to Bitcoin’s rally today.
Bitcoin’s Price Action and Consolidation Pattern
Today’s rise in Bitcoin’s price is part of its ongoing consolidation trend. This pattern appears to be forming a pennant, which could suggest a potential bearish continuation in the context of Bitcoin’s previous downtrend. If the price breaks below the lower trendline of this pennant, it could fall by the height of the previous downtrend. Applying this technical analysis to Bitcoin’s current price trends suggests a potential downside target of $56,250 by July, representing an 8.5% decline from current levels.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
