1 min läsningWhile equities turn weaker, bitcoin hits new yearly highs
Tuesday’s inflation print revealed sticky services inflation, causing short and long term rates, as well as the dollar to spike. Markets were quick to reprice FED futures rate expectations, shifting the likelihood of the first interest rate cut from May to at least June.
As a result, equities and Bitcoin both reacted negatively, yet Bitcoin has since bounced back and reached new yearly highs. The largest cryptocurrency now stands at a market cap above $1 Trillion dollars for the first time since December of 2021.
The largest driver of recent Bitcoin strength has been strong US ETF inflows amidst extremely weak grayscale outflows.
Tuesday saw the largest net inflow since launch day, at just above 650 million dollars, and total Assets Under Management for US ETF’s stands at just over 12 billion dollars, excluding Grayscale.
The current strength of inflows is emphasising that demand for bitcoin is far oustripping not only newly issued supply by miners, but also supply that is available in the market.
