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On Friday, Bitcoin’s value reached stability, climbing above the $61,000 threshold after dropping to a near two-month low at the beginning of the week. Its recovery was bolstered by renewed investments into Bitcoin Exchange Traded Funds (ETFs) based in the US, alongside weakened economic indicators from the US, reinforcing arguments for potential Federal Reserve interest rate reductions.
Following seven consecutive days of capital outflows, the US saw a positive shift in spot Bitcoin ETF capital flows on June 25 and 26. Moreover, from the start of May to June 26, the total assets in US-based funds grew from $47 billion to over $52 billion. The value of Bitcoin was also supported by a decrease in the US dollar value and Treasury yields, following the release of American economic data indicating a sustained slowdown in economic activity, which fueled speculations of interest rate cuts. Investors are now anticipating the release of US Personal Consumption Expenditures (PCE) inflation data, expected later on Friday, for further understanding of the Federal Reserve’s monetary policy direction. Market sentiments were also swayed by the political arena, especially after the first presidential debate in the US between Donald Trump and Joe Biden, with Trump being recognized as the more pro-Bitcoin candidate.
(BTCUSD Weekly Chart)
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