Bitcoin Reaches $68000 Amid Positive ETF Inflows and Cooling US Inflation

20. May 2024 Posted by Laurent C. on News

Bitcoin has reached its highest level since April 12 after dropping to $56,500 on May 1 due to fears of stagflation. Notably, ETF flows remain closely tied to price movements. Last week, Bitcoin ETFs saw positive inflows on all five trading days, with total net flows of approximately $950 million.

Further inflows into BlackRock's IBIT and other spot Bitcoin ETFs could push Bitcoin's price above $70,000 in the near future. Previously, Bitcoin's attempt to stay above this level was unsuccessful; after peaking at $72,756 on April 8, it plummeted by 17% within nine days.

Recently, Bitcoin experienced a significant rally following a CPI report indicating cooling US inflation. This suggests Bitcoin may benefit from several expected rate cuts this year.

On Monday, Bitcoin surged alongside the Nasdaq 100, which increased by 0.82%. The correlation between Bitcoin and tech stocks has reached its highest level in almost a year.