The question that comes to mind every day when we examine the cryptocurrency sector is whether Bitcoin will create history today. And when Bitcoin hit a record high of $118,302, the answer was yes, just now. However, as soon as this joy rippled throughout the market, a small drop made investors’ hearts race. After a four-day remarkable run, Bitcoin ended the day at $116,617, down 0.23%.
The cryptocurrency market was slowed down by trade tensions
America’s new trade policy was the main cause of this fall. In a significant move, President Trump declared a 30% tariff on Canada, Mexico, and the European Union. Both commerce and the global economy may be shaky as a result of these actions. Investors worry that inflation might resurface, and the Fed might delay its interest rate-cutting plan in such a scenario. Confusion in the cryptocurrency market was another effect of this worry.
In America, Crypto Week boosted interest in ETF investing
The US Parliament announced relief in this severe trade war environment, and the following week has been dubbed “Crypto Week.” Parliament will vote on three significant proposals this week: the Anti-CBDC Surveillance Act, the GENIUS Act, and the Clarity Act. These laws are an effort to provide the cryptocurrency industry with a clear legal framework, which will reassure investors that digital assets are now heading toward a secure and stable future.
We witnessed significant inflows into Bitcoin Spot ETFs as a result of this confidence. $1.76 billion was invested in BlackRock’s iShares Bitcoin Trust (IBIT) alone. ARK 21Shares (ARKB) saw $339.1 million, while Fidelity Wise Origin Bitcoin Fund (FBTC) saw $399.9 million. This week’s $2.72 billion total investment was the third-largest weekly inflow since the ETF’s January 2024 inception.
Technical signals: Bitcoin’s move is still bullish
If we talk about technical analysis, Bitcoin is currently trading above its 50-day and 200-day exponential moving average (EMA), which is a strong bullish sign. If BTC crosses the previous record of $118,302, it can reach $120,000 and further $130,000. However, the RSI index is at 71.81, which suggests that Bitcoin has reached the overbought zone, and some profit booking can also happen from here.
Ethereum gained traction as well, and the ETF flow revitalised
When it comes to Ethereum, it is likewise consistently above its moving average. ETH has reached a high of $3,038.35; if it maintains this level above $3,000, it may be easy to see the path to $3,287 and eventually $3,500. A $675 million weekly inflow into BlackRock’s ETHA ETF also garnered media attention. For the first time, ETH flows have surfaced from the shadow of Bitcoin.
Disclaimer: This article is written for informational purposes only. Do not consider any information given in it as investment advice. The cryptocurrency market is highly volatile, so consult your financial advisor before making any financial decisions. Invest wisely.
Also Read:
Bitcoin Hits All-Time High Before Crypto Week: Here is What You Need to Know
Binance Report Reveals: Crypto Is not Just Surviving, It is Thriving