Bitcoin's price rebounded to $64,000 as concerns over U.S. interest rate hikes eased, leading to renewed inflows into spot exchange-traded funds (ETFs) and improving investor sentiment.
According to CoinMarketCap, Bitcoin was trading at $64,628 as of 8 a.m. on August 19, reflecting a 0.56% increase from the previous day.
The rebound is attributed to a reduction in market worries regarding U.S. monetary policy. Recent trends in inflation and employment have led to expectations that the Federal Reserve is less likely to implement further interest rate hikes, reviving interest in riskier assets. As fears of sustained high interest rates diminish, there is a greater likelihood of capital flowing into volatile assets like cryptocurrencies.
Additionally, the return of positive fund flows into Bitcoin spot ETFs has contributed to the favorable outlook. On August 17, U.S. spot Bitcoin ETFs recorded a net inflow of approximately $137.3 million, indicating a decrease in selling pressure from institutional investors, who had previously withdrawn about $385.2 million over the last five trading days.
Most altcoins also saw price increases. Ethereum rose by 0.57% to $1,914, while Tether increased by 0.03% to $0.99. Ripple and Solana also gained 0.03% and 1.64%, respectively.
Meanwhile, as of 8 a.m. on the same day, Bitcoin was trading at 90,840,000 won (approximately $64,269) on the domestic exchange Bithumb, marking a 0.10% decrease from the previous day. The 'Kimchi premium' stood at -0.45%, indicating that the price of Bitcoin traded domestically is lower than that in international markets.
* This article has been translated by AI.
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