Bitcoin price saw a slight increase on Tuesday following a weekend rout that prompted some bargain buying. While capital flows data indicated an increase in traders investing in crypto products, the major inflows were seen in Ether, rather than Bitcoin. The sentiment towards crypto markets was also affected by a lack of discussion on crypto regulations during a conversation between Donald Trump and Elon Musk.
Data from digital assets manager Coinshares revealed significant inflows in crypto investment products, particularly those linked to Ether. The influx of over $155 million in Ether products contrasted with the mere $13 million in Bitcoin inflows. The market was still recovering from the losses incurred the previous week, causing prices to fluctuate within a certain range.
Bitcoin’s price rose by 1.2% to reach $59,305.3, driving a mild increase in broader cryptocurrency prices. However, altcoins like Ether, SOL, XRP, ADA, and DOGE also experienced minor gains. Despite this, most altcoins remained rangebound, indicating a sense of caution among investors. The market’s uncertainty was further exacerbated by the upcoming U.S. consumer price index inflation data release, which could influence the Federal Reserve’s interest rate decisions.
Although Trump has previously shown support for the crypto industry, his conversation with Musk did not touch upon crypto regulations. This disappointed some market participants who were hoping for a reaffirmation of Trump’s backing for crypto. While his lack of mention does not signify a change in his overall stance, it did lead to a momentary dip in Bitcoin’s price.
The interaction between Trump and Musk, alongside the market’s response to the lack of discussion on crypto regulations, highlights the market’s sensitivity to political statements. The ongoing volatility in prices, along with the cautious sentiment prevailing before the release of key economic indicators, suggests that investors are closely monitoring external factors that could influence crypto prices in the near future.