Bitcoin today tries to take advantage of the market’s good mood to return to US$60,000 By Investing.com

Investing.com — The price of bitcoin today remains below US$60,000, but has recovered part of the losses of recent days, thanks to the improvement in market sentiment regarding the outlook for interest rates in the United States.

At 1:15 pm Brasília, the largest cryptocurrency in the world was quoted at US$59,200, which represents an increase of 4% in the last 24 hours. This week, bitcoin lost the important psychological level of US$60,000 and is now around 22% below the record price of US$73,740, reached at the beginning of March.

Bitcoin price today reflects optimism with the prospect of interest rates in the US

When an asset moves more than 20% away from its recent peak, it means it has entered a bear market. This is precisely the situation with bitcoin at the moment.

The world’s most valuable cryptocurrency has struggled to make headway in price after reaching a record high in March, mostly remaining within a trading range of $60,000 to $70,000 for more than a month.

However, this week bitcoin broke out of consolidation amid a series of negative factors, with the main influence being the growing conviction that interest rates in the US will remain high for an extended period. This perception minimized the advantage the token could have gained from an overnight drop in , as the Federal Reserve indicated that it does not plan to raise interest rates in the future.

Still, the central bank has also shown little interest in starting to cut rates, especially in the face of persistent inflation.

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Higher interest rates for longer tend to be unfavorable for risky assets like bitcoin, which generally do better in low-rate, high-liquidity environments that favor speculative trading.

Fears of high rates have also dampened enthusiasm for cash market exchange-traded funds (ETFs), which launched in U.S. markets earlier this week. Bitcoin investment products have faced massive withdrawals for three consecutive weeks.

The launch of spot ETFs in Hong Kong also did not provide much excitement for the crypto markets, as the products showed limited inflows in their first sessions.

Cryptocurrency Price Today: Follows Losses While Altcoins Perform Positively

Overall cryptocurrency prices exhibited some positive trends but still remained relatively contained due to the lack of significant positive catalysts for the sector.

The world’s second most valuable token, , saw a 3% drop, following the declines of its larger peer.

A had an increase of 3%, while it had an increase of 1.6%. However, both tokens have remained firmly within an established trading range over the past month.

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Bitcoin ETFs continue to suffer redemptions

Recent data shows that US spot bitcoin ETFs had the largest daily withdrawals since their launch yesterday, totaling $563.7 million.

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An interesting detail about the fund withdrawals is that the ETF had more exits than the . Yesterday, the registered an outflow of 191 million dollars, while GBTC’s outflows were 167.2 million dollars. These ETFs were followed by Ark Invest, which recorded the third largest outflow with $98.1 million. The ETF then saw an outflow of $36.9 million, marking the first time it recorded an outflow on a daily basis. In general, it was observed that, except for Hashdex’s inactive ETF, all exchange-traded investment funds ended the day in the red.

Following yesterday’s outflows, total assets under management of U.S. spot bitcoin ETFs fell to $11.2 billion. Throughout the month of April, the funds recorded a net outflow of US$343.5 million, thus ending a three-month sequence of inflows. On the other hand, GBTC, which has seen fund losses since its launch date, also recorded an outflow of 2.5 billion dollars last month.

ETF Outflows Negatively Affect Bitcoin Starting the month of May with fund losses, US spot bitcoin ETF support for the price of bitcoin appears to have ended, while the largest cryptocurrency lost around 15% of its value in April. Starting May also in decline, bitcoin saw a devaluation of around 6% since yesterday, falling to as low as 56,500 dollars.

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