Bitcoin price rose on Monday, recovering a measure of losses from last week as sustained capital flows into exchange-traded funds and anticipation of the upcoming “halving” buoyed the world’s largest cryptocurrency.
Bitcoin rose 4.9% to $67,462.8 by 01:46 ET (05:46 GMT), and was trading about $6000 below a record high hit earlier in March.
Bitcoin price underpinned with ETF inflows, upcoming halving in focus The world’s largest cryptocurrency tumbled from record highs over the past week, sinking as low as $60,000 as traders locked-in profits from a recent melt-up to record highs.
But the token rebounded sharply from those lows as capital flows into the recently-approved spot exchange-traded funds remained robust. However, sustained outflows from Grayscale Bitcoin Trust (BTC) (NYSE:GBTC) provided some pressure on spot Bitcoin prices.
Anticipation of the upcoming “halving” event, where the Bitcoin network’s generation of new tokens will be slashed by 50%, also kept buying interest in the cryptocurrency upbeat.
The halving event is expected to occur some time in April with the generation of the 740,000 block, and is likely to further limit Bitcoin supply. But markets remain unclear over the exact timing of the event.
Still, a bigger recovery in Bitcoin price was largely limited by strength in the dollar. The greenback raced to a one-month high on Monday as dovish signals from major global central banks saw investors largely favor the dollar as the only high-yielding, low-risk currency.
Anticipation of more signals on U.S. interest rates- from key personal consumption expenditures data, which is the Federal Reserve’s preferred inflation gauge- also kept the dollar upbeat. The data is due this Friday.
A string of Fed officials are also set to talk through this week, offering up more cues on the bank’s plans for interest rate cuts in 2024. Last week’s Fed meeting showed the central bank still saw 75 basis points worth of cuts this year.
