Here’s Why Bitcoin & Crypto Market Is Up On Wednesday

Bitcoin price struggled to regain its momentum in the early U.S. session despite a recovery noted in the broader crypto market today. The altcoins have reclaimed their position in the green today, following sluggish trading over the past week, and the rally was led by the second largest crypto by market cap, Ethereum.

However, as of writing, Bitcoin also wiped off some of its losses and stayed in the green today.

Reasons Why Bitcoin Price Is Struggling

Bitcoin ETF Outflows

Bitcoin price has struggled over the past few days, after witnessing a strong run in the last few months. Notably, the recent rally in BTC was primarily driven by the robust influx into the U.S. Spot Bitcoin ETFs, among other reasons, that have bolstered market sentiment.

In addition, several other market trends and bullish forecasts from the market pundits have also fueled confidence in the market. Having said that, the recent outflow in the U.S. Spot Bitcoin ETFs has weighed on the sentiment.

For context, the Spot Bitcoin ETFs have noted outflows for the last four days, totaling more than $700 million. On June 18, the outflux was $152.4 million, led by Fidelity’s FBTC recording $83.1 million and GrayScale’s GBTC noting $62.3 million outflux.

Other Concerns

This notable outflow has raised concerns of the investors while impacting the risk-bet appetite of the investors. In addition, the mixed outlook of the Fed officials with their policy rate plans has also continued to weigh on the sentiment, despite the latest data showing that the inflation is cooling in the U.S.

Having said that, the investors seem to be shifting their focus on the lower-priced altcoins for now, while seeking further clarity before entering the market. Besides, popular crypto market analyst Ali Martinez has previously said that Bitcoin needs to climb above $66,254 to avoid a potential drop to $61,000.

However, given the current range of BTC trading at $65,000, investors remain cautious. Despite that, BTC has traded in the green today near the flatline.

Also Read: Bitcoin (BTC) Price Correction to $60,000 Coming As Per On-Chain Data

Why Is the Crypto Market Up Today?

The crypto market has shown upward momentum today, despite a dip in Bitcoin price, reflecting the growing confidence of the investors towards the crypto. Notably, the altcoin surge was led by Ethereum, as its price jumped after the U.S. SEC concluded its investigation on Ethereum’s security status.

This development is amid the soaring optimism over a potential approval of the U.S. Spot Ethereum ETF by the U.S. SEC by July 2. Bloomberg analyst Eric Balchunas has recently unveiled this potential timeline for the approval, sparking market optimism.

Macroeconomic Factors In-Play

The recent data showing that global inflation is cooling has also bolstered market sentiment. For context, the European Central Bank (ECB) has announced its first rate cut in years, boosting investors’ confidence.

On the other hand, the recent U.S. CPI and PPI data also showed that inflation is cooling. Although it still stays above the Fed’s 2% target range, it appears to have cooled off in May, raising bets over potential two rate cuts by the Federal Reserve. However, the positive data has failed to have any immediate impact on Bitcoin or in the broader crypto market.

In addition, the most recent data showed that the U.K. CPI inflation cooled to 2% in May from 2.3% in the previous month. For the first time in about three years, the figure came in line with the BoE’s target range, with investors anticipating a potential rate cut by the central bank.

Bottom Line

Although Bitcoin has struggled amid the recovery noted in the broader crypto sector, market pundits still remain optimistic about BTC’s long-term trajectory. For instance, Ali Martinez, in a recent X post, shared a potential timeline for Bitcoin to reach its top citing historical trends.

Martinez said that if Bitcoin’s performance mirrors the last three cycles’ movements, then Bitcoin could reach its top either in December 2024 or October 2025.

However, as of writing, Bitcoin price has wiped off some of its losses and exchanged hands at $65,300. It has touched a low of $64,066.96 in the last 24 hours. On the other hand, Ethereum price soared nearly 4% to $3,560, after touching a 24-hour high of $3,583.88.

Also Read: The Sandbox Expands Memecoin Chest With DOGE, PEPE, SHIB Purchase