Bitcoin experienced a notable rise in its price, climbing approximately 1.5% to reach $61,700 on June 28, reflecting broader gains across the cryptocurrency market. This surge is attributed to the resumption of inflows into Bitcoin exchange-traded funds (ETFs) and the recent filing of a Solana ETF application by VanEck.
In recent days, U.S.-based Bitcoin ETFs have seen three consecutive days of inflows, signaling a renewed risk appetite among investors. As of June 27, these ETFs managed assets worth $14.44 billion, a rebound from the $14.383 billion recorded earlier. However, this figure remains below the peak of $15.68 billion seen earlier in June.
VanEck's new spot Solana ETF application has further buoyed the market, alongside its pending Ethereum ETF application with the U.S. Securities and Exchange Commission (SEC). This development highlights growing interest and confidence in crypto ETFs as a vehicle for mainstream investment.
Additionally, Bitcoin's price movement is influenced by expectations of lower inflation data. The Personal Consumption Expenditures (PCE) price index, anticipated to drop to an annualized rate of 2.6%, down from 2.8%, suggests a potential slowdown in inflation. This scenario could pave the way for the Federal Reserve to reduce interest rates in 2024, enhancing the appeal of riskier assets like cryptocurrencies.
Bitcoin's recent rally is also part of a broader consolidation trend. The formation of a bear pennant pattern in the price chart indicates potential downside risk. A breakdown below the pattern's lower trendline could see Bitcoin's price target drop to around $56,250. Conversely, a decisive break above key resistance levels, including the 50-4H exponential moving average (EMA) and the descending trendline at approximately $62,000, could invalidate the bearish outlook, setting a new target of $65,000.
Investors are closely monitoring these technical levels and macroeconomic indicators to gauge Bitcoin's next moves. The interplay of ETF inflows, regulatory developments, and inflation expectations continues to shape the cryptocurrency market's dynamics.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
