Bitcoin prices experienced a slight drop on Tuesday, remaining within a stable trading range that has been established over the past two months. The focus continues to be on U.S. inflation data, which will provide more insight into future interest rates.
Despite an increase in capital flows into crypto investment products, Bitcoin saw minimal price movement, with a 1.3% decrease over the past 24 hours to $61,856.1. This lack of significant price action comes even as investment products recorded their first inflows in five weeks.
Although there were positive signs in the form of capital inflows into crypto products, overall trading volumes remained low. This is in contrast to the high trading volumes seen in March when Bitcoin reached its all-time peak. Various factors such as interest rate concerns, regulatory uncertainties, and fading ETF hype have contributed to the stagnant price movement of Bitcoin.
The broader crypto market followed Bitcoin’s lead on Tuesday, with altcoins showing mixed performance. The second-largest token, Ethereum, dropped by 1.9% to $2,906.85, while other altcoins experienced varying levels of price changes.
Memecoins, such as Dogecoin and newer memecoin PEPE, saw some gains following an overnight rally in meme stocks like GameStop and AMC Entertainment Holdings on Wall Street. However, overall crypto prices remained subdued as investors awaited key U.S. inflation data later in the week.
An upcoming U.K. election is not expected to impact the country’s regulatory plans for crypto. The ruling Conservative party has introduced several measures to make the U.K. a crypto hub, including enabling the Financial Conduct Authority to regulate crypto as a financial activity. Industry stakeholders believe that progress in crypto regulation will continue despite the upcoming election.
Overall, the crypto market remains cautious as it awaits key economic data and regulatory developments that could impact prices and market sentiment in the coming days.