On Tuesday, the price of bitcoin experienced minor fluctuations as halving did not lead to major changes in value, while capital outflows from investment products continued amid uncertainty about interest rates, UNN writes with reference to Investing.com.
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Although the halving took place without major changes in price, the launch of a new protocol on the Bitcoin blockchain increased activity on the network, but did not provide significant support to the token price. This launch, however, took attention away from halving. Over the past 24 hours, bitcoin has lost 0.1% of its value, dropping to $66,318.6.
Bitcoin prices are said to remain muted due to steady outflows from ETFs. According to CoinShares data released on Monday, bitcoin-based investment products, including exchange-traded funds, lost about $192 million in the week to April 21. Due to the decline in interest after the launch of spot Bitcoin ETFs earlier this year, overall trading volumes also declined. In particular, U.S. ETFs lost $244 million last week, according to a report by CoinShares.
Although the launch of spot ETFs led to record prices for bitcoin in March, prices have remained mostly in the $60,000 to $70,000 range over the past month due to an indicated loss of enthusiasm for ETFs.
Recent weeks have reportedly seen steady outflows from cryptocurrency ETFs as markets have become less confident in an imminent interest rate cut by the US Federal Reserve. Lower interest rates remain key to the long-term growth of cryptocurrencies as the sector benefits from increased speculation in a highly liquid environment.
The prospect of rising interest rates, reflected in the Fed's statements and inflation data, creates a less favorable environment for cryptocurrencies.
Today, altcoin prices are holding slightly higher. Some other cryptocurrency tokens also rose slightly on Tuesday, but remain limited due to the lack of positive signals for the sector, the publication writes.
For example, Ethereum, the world's second-largest token, experienced a 1.3% decline, falling to $3,184.07, while Solana and XRP rose by 3.2% and 2.5%, respectively.
The further development of altcoins has been limited, as many crypto traders have remained primarily interested in bitcoin, as indicated.
Although cryptocurrency token prices remained stable, shares of cryptocurrency companies showed some growth on Monday. This was reportedly due to the rise in bitcoin transaction fees to record levels, which negated the impact of halving, which usually cuts mining fees in half.
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