Bitcoin price is rising again. This morning, Bitcoin held above $37,000, after hitting a high above $38,000 late in the day. At press time, BTC is trading around $37,329, up 4% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rises again, money inflows increase in the past two weeks
Although it is slightly down from the 24-hour record high of $38,102 in the past few hours, investors are starting to take advantage of the continuous upward movement over the past several hours and now at $1,000 higher than the same hour yesterday, rising a little bit of optimism for investors.
In fact, data from digital currency manager CoinShares shows that inflows into the crypto market have increased from last week to a record two-week high, as more investors took advantage of the opportunity low price today to buy in.
Bitcoin price in mid-May plummeted from a peak of $ 64,800 to a dip of nearly $ 30,000, causing the market capitalization to sometimes lose $ 500 billion.
This price drop triggered panic selling among new investors but is still seen as a great opportunity for new entrants to the cryptocurrency market.
Accordingly, the cash flow into crypto products and investment funds totaled $74 million in the past week, after reaching $151 million two weeks earlier, accounting for 0.3% of the total value of assets under management.
Data from CoinShares shows that Bitcoin products last week continued to see outflows of around $4 million in the past week, bringing the total outflow of Bitcoin over the last three weeks to $246 million. Even so, year-to-date, the inflows into Bitcoin are still up to $4.4 billion.
Meanwhile, Ethereum has shown inflows of $47 million over the past week, bringing the total inflows this year to $973 million. The coin has gained 13% in the past week but is down 41% the week before.
Investment product lines also show that altcoins, or tokens other than Bitcoin, excluding ether, remain popular, with money pouring into Cardano, Polkadot, and XRP.
Grayscale remains the largest digital currency manager with $33.6 billion, but the assets they manage are down from $47.3 billion two weeks ago.
Accordingly, currently, the Bitcoin and ETH networks seem to be in a state of congestion again. According to Glassnode, the average transaction fees for both Bitcoin and Ethereum have returned to levels not seen since Jan 2021 and Aug-Sept 2020 during DeFi Summer.
The average transaction fee paid on each network is currently $7.38 for $BTC and $6.08 for $ETH.
Source: Glassnode
According to professional traders, Bitcoin is trying to break above $40,000 – a key resistance level before continuing its upward momentum. Some have suggested that the price of this cryptocurrency could reach between $75,000 and $130,000, based on Bitcoin’s growing popularity and widespread acceptance from retail investors as well as to large corporations in the world.
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