Bitcoin Price Supported by ETFs and Corporate Buying

Bitcoin Price- Bitcoin Rallies on Anticipation of U.S. Inflation Figures

Bitcoin Price– Bitcoin maintained its position above $110,000 on Tuesday, buoyed by ongoing institutional buying and cautious investor sentiment as markets await crucial U.S. inflation figures that could impact the Federal Reserve’s interest rate decisions later this year.

Bitcoin Price Movement and Market Context

The cryptocurrency last traded at around $109,900, reaching a session high of $110,237. Over the past week, Bitcoin has gained 4.2% and remains close to its May 22 peak of $111,814, according to CoinGecko data. Investors are now focused on the upcoming Consumer Price Index (CPI) report for May, scheduled for Wednesday at 8:30 a.m. ET, with economists predicting a 0.3% rise in core CPI and a 0.2% month-over-month increase in headline CPI.

Market Sentiment and Federal Reserve Outlook

FXTM senior market analyst Lukman Otunuga told Decrypt that markets are “in a holding pattern” as traders await fresh catalysts, especially U.S. inflation data that may influence Fed expectations. He added, “Meanwhile, gold remains in focus, with a technical breakout potentially signaling a renewed push toward record highs.”

Sticky inflation could postpone anticipated interest rate cuts, potentially weighing on risk assets. Yet, Fed funds futures currently show a 61% probability of a rate cut by September, based on CME’s FedWatch Tool.

Institutional Buying Supports Price Stability

Rachael Lucas, a crypto analyst at BTC Markets, noted to Decrypt that the current Bitcoin rally “is less speculative and more structurally driven than in past cycles,” with institutional capital, ETFs, and corporate treasuries contributing to sustained buying pressure. She highlighted a recent $54.5 million leveraged long position that boosted momentum and said support remains strong around $105,500.

Growing Institutional Interest and ETF Inflows

Strategy (formerly MicroStrategy) holds 582,000 BTC. Meanwhile, Japan’s Metaplanet aims to raise $5.4 billion to increase Bitcoin reserves, and The Blockchain Group targets $342 million in fundraising, reflecting robust demand despite market uncertainties.

In the ETF space, BlackRock’s iShares Bitcoin Trust (IBIT) has amassed $70 billion in assets. Ethereum ETFs have recorded 15 consecutive days of inflows, totaling $837.5 million, according to CoinGlass data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.