Bitcoin saw a slight uptick in its price on Tuesday, recovering from a weekend dip as bargain hunters entered the market. However, the overall risk sentiment remained subdued as investors awaited key U.S. economic indicators expected later this week.
Data on capital flows indicated that traders were attracted to crypto investment products throughout last week, with Ether leading the inflows. Despite this, the sentiment in crypto markets took a hit following a discussion on X (formerly Twitter) between Republican presidential candidate Donald Trump and Tesla CEO Elon Musk, where cryptocurrency regulations were notably absent from the conversation.
As of 01:53 ET (05:53 GMT), Bitcoin was trading at $59,305.3, marking a 1.2% increase.
Musk-Trump Discussion Disappoints Crypto Advocates
The conversation between Musk and Trump left some market participants disappointed, particularly those who were expecting the Republican nominee to reinforce his support for cryptocurrencies. While Trump has previously shown support for the industry, including a speech at the Bitcoin conference last month, his reluctance to mention crypto in more mainstream settings continued during his talk with Musk. Following the discussion, Bitcoin briefly dipped to $58,000 as traders reacted to the absence of any crypto-related discourse.
Institutional Demand for Bitcoin Remains Low as Ether Inflows Surge
Data from digital assets manager Coinshares revealed on Monday that while there was a significant uptick in inflows to crypto investment products, this was primarily driven by Ether. Ether-related products saw inflows of over $155 million, particularly following the underwhelming launch of spot Ether exchange-traded funds in U.S. markets last month. In contrast, Bitcoin only managed to attract around $13 million in inflows.
The broader crypto market continued to recover from last week’s losses, with Bitcoin stabilizing within a range of $50,000 to $60,000—a pattern it has maintained for much of this year.
Altcoins Follow Bitcoin’s Lead, Cautiously Await Inflation Data
The broader cryptocurrency market saw mild gains on Tuesday, with altcoins tracking Bitcoin’s movements. Ether, the second-largest cryptocurrency, rose by 3.8% to $2,651.26, while other altcoins like SOL, XRP, and ADA saw increases ranging between 0.2% and 1.6%. Meme token DOGE also rose by 2.9%.
Market participants remain cautious ahead of the U.S. consumer price index inflation data release on Wednesday, which is expected to provide further insight into the Federal Reserve’s potential interest rate cuts.
Sources: Investing.com.
