Bitcoin
rose Thursday amid continued optimism about regulators approving a spot Bitcoin exchange-traded fund. Ahead of any decision, economic data due Friday are likely to be the next catalyst for cryptos.
The price of Bitcoin has risen 0.5% over the past 24 hours to near $30,450. The largest digital asset remains comfortably above the key psychological level of $30,000 it breached last week after financial giant
BlackRock
(ticker: BLK) filed for a Bitcoin ETF, but remains below recent highs near $31,500.
“Bitcoin has steadied between $30,000 and $31,000 in recent days after surging on the back of encouraging ETF filings,” said Craig Erlam, an analyst at broker Oanda. “It would appear the cryptocurrency has good momentum once more and the community may well be wondering if this could be the kind of development that sees enthusiasm for cryptos surge again.”
The next catalyst for a more substantial move in digital assets likely will be Friday, with the release of the U.S. personal-consumption expenditures (PCE) index for May. PCE is the Federal Reserve’s preferred measure of inflation and will be watched closely by investors. It’s likely to move the
Dow Jones Industrial Average
and
S&P 500
and Bitcoin.
The Fed’s campaign of inflation-fighting interest-rate hikes since March 2022 has been a driving force behind declines in Bitcoin and other risk-sensitive assets, and the big rally in crypto this year has come amid expectations that the worst is over. The Fed held rates steady this month for the first time in this cycle, but central bank officials have made it clear that inflation remains too high and that more rate hikes may be coming.
Investors will want to see continued declines in inflation as measured with PCE to increase expectations of easier monetary policy, which should support Bitcoin.
Beyond Bitcoin,
Ether
—the second-largest crypto—traded around flat at $1,850. Smaller cryptos, or altcoins, were more muted, with
Cardano
losing 1% and
Polygon
dropping 2%. Among memecoins,
Dogecoin
was down 2% and
Shiba Inu
shed 1%.
Write to Jack Denton at [email protected]
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