Bitcoin price boosted over $71,000 thanks to spot ETFs inflows

Other cryptocurrencies are also on the rise amid favorable market and regulatory developments

Because of enormous inflows into US-listed spot Bitcoin ETFs, Bitcoin has recently seen its price rise beyond $71,000.

On June 4, almost $880m came in which was one of the best days for these types of financial instruments since they were approved at the beginning of this year.

Bitcoin rose to $47,000 following the US Securities and Exchange Commission's (SEC) approval of Bitcoin spot ETFs in January and it has been going higher and higher ever since.

FBTC by Fidelity took the lead with $378m while IBIT from BlackRock and ARKB by Ark 21Shares followed closely behind with $270m and $138m respectively. Even Grayscale’s GBTC, which usually sees outflows, attracted $28m in new investments.

The positive trend surrounding Bitcoin ETFs coincides with a broader rally throughout the cryptocurrency market. Traders are growing more optimistic that the Federal Reserve could lower interest rates before November after data indicated weaker American inflation and jobs growth numbers last week. This should strengthen risk assets like cryptocurrencies making them more appealing to investors.

ETF inflows did not just drive up Bitcoin’s value though. Wider market moves such as a sharp fall in Treasury yields (which saw their biggest two-day drop this year) also helped push prices higher for the digital asset as well as other cryptocurrencies. Tom Couture from Fundstrat Global Advisors commented that cryptocurrencies are responding positively to lower rates.

Other major cryptos have fared well, too. Binance's BNB token hit record highs above $702 on the morning of June 3, surpassing its previous peak from earlier in 2021. The price move followed legal wrangles with US authorities that appeared to have been resolved over the weekend.

There is strong overall sentiment because there have been positive regulatory developments both domestically and internationally. Ether (ETH) spot ETFs were approved for listing in the US recently while Thailand and Australia gave the green light to their first BTC spot ETFs.

Some analysts believe that Bitcoin could be just days away from fresh all-time highs. Markus Thielen at 10X Research points to the broader market rally and better performance from miners as key drivers while Bitfinex has noted a phase of accumulation by long-term holders and whales that could provide further support for the upward move.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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