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HomeCryptoBitcoin Price Hovers Around $71k Amid Focus on Halving and CPI Data
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Bitcoin Price Hovers Around $71k Amid Focus on Halving and CPI Data

The price of Bitcoin experienced a rise on Tuesday, lingering below recent record highs as traders awaited further insights into the upcoming halving event and crucial U.S. inflation data.

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The world’s leading cryptocurrency witnessed a 2.5% increase in the past 24 hours, reaching $71,133.3 by 01:37 ET (05:37 GMT), building upon a recovery observed over the weekend.

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Despite this uptick, Bitcoin remained below its record high of over $73,000, with broader risk sentiment impacted by anticipation surrounding key U.S. inflation data, which is anticipated to influence interest rate projections. The release of the consumer price index reading is scheduled for Wednesday.

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Bitcoin’s price surge was primarily supported by the anticipation of the upcoming halving event, expected to take place later in April with the generation of block no. 840,000 on the Bitcoin blockchain. This event is slated to halve the rate at which new Bitcoin is mined, potentially tightening the future supply of the token.

The halving event aligns with the narrative that Bitcoin scarcity will drive its price higher, making it a closely monitored event within crypto markets. However, it also exerts pressure on smaller Bitcoin miners by reducing their mining rewards.

The positive momentum in Bitcoin spilled over into other cryptocurrencies, with Ethereum, the second-largest token, witnessing a 7.6% rise to $3,688.20, and XRP climbing by 4.3% to $0.61785.

Data from digital asset manager CoinShares revealed on Monday that while crypto investment products experienced capital inflows in the week to April 8, excitement surrounding the approval of spot Bitcoin exchange-traded products appeared to be subsiding.

Total inflows into digital assets amounted to $646 million last week, with a significant portion directed towards Bitcoin, which has dominated the crypto narrative in recent months.

However, overall capital flows remained below levels seen in early March, with trading volumes also showing a decline from earlier highs in the year.

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission served as a significant catalyst for the token’s price surge in 2024. Nevertheless, this development further entrenched the crypto market’s focus on Bitcoin.

Meanwhile, Ethereum saw outflows of $22.5 million, with traders displaying caution towards the token amidst reports of a SEC investigation into the Ethereum Foundation. The SEC is also expected to make a decision on spot Ethereum ETFs in late May.

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