Bitcoin price today: rises to $56k on bargain buying, inflation in focus

Published 10/09/2024, 07:26
© Reuters.
BTC/USD
-
ETH/USD
-

Investing.com-- Bitcoin’s price rose on Tuesday, extending a rebound in recent sessions as steep losses from last week saw bargain buyers step into cryptocurrency markets. 

But Bitcoin’s rebound was limited by anticipation of key U.S. inflation data this week. Sustained capital outflows also showed sentiment towards crypto remained weak.

Bitcoin rose 3.4% to $56,715.3 by 01:1 ET (05:16 GMT). 

Bitcoin nurses steep losses from last week 

Crypto markets were nursing steep losses from the past week, amid a broader decline in risk-driven markets as traders grew more concerned over an economic slowdown.

This selldown saw Bitcoin sink as low as $52,000, although the token managed to recover over the past two sessions. 

Bargain buying played a major role in supporting Bitcoin, as recent capital flow data showed institutional investors turned largely averse towards crypto. 

Crypto sees heavy weekly outflows 

Crypto markets saw outflows totaling about $726 million in the past week- their biggest weekly outflow since March, data from digital assets manager CoinShares showed on Monday. 

Traders were seen increasing short positions on Bitcoin, while altcoins were sold off across the board. 

Fears of slowing economic growth and expectations of a smaller interest rate cut by the Federal Reserve drove these outflows, as did a broader risk-off move in global financial markets. 

"The crypto market finds itself in an unusual state of suspended animation. Trading volumes and liquidity have taken a hit in recent weeks, coupled with persistent ETF outflows and the waning popularity of once-hot basis trades. It's as if the entire sector is holding its breath, waiting for a catalyst," Kristian Haralampiev, Structured Products Lead at Nexo told Investing.com.

Haralampiev noted that a divergence was emerging between speculation over Ether and Solana, with a bias towards Solana reflecting some market hedging for more gains in the token.

Trump-Harris presidential debate in focus 

Crypto markets were awaiting the first presidential debate between Donald Trump and Kamala Harris, which is set to take place later on Tuesday.

Any signs of Trump gaining an edge in the presidential race are likely to boost crypto prices, given that the Republican candidate has maintained a largely pro-crypto stance in his campaigning efforts. 

But a slew of polls released in late-August showed Harris held a slight lead over Trump, especially after her official nomination as the Democratic presidential nominee.

Crypto price today: altcoins regain some ground, CPI awaited 

Broader cryptocurrency prices tracked a recovery in Bitcoin. World no.2 crypto Ether rose 2.1% to $2,344.98. 

SOL, XRP, ADA and MATIC rose between 1% and 5%, while among meme tokens, DOGE added 7.7%. 

Focus was squarely on upcoming U.S. consumer price index inflation data, due on Wednesday, for more cues on interest rates.

The reading comes just a week before a Federal Reserve meeting, where the central bank is widely expected to cut interest rates by 25 basis points. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.