Bitcoin has been trading between $59,000 and $61,000 for the past two weeks, with the price briefly rising above $61,000 during Asian trading hours. Traders are closely watching the Federal Reserve’s annual Jackson Hole symposium, hoping for comments that could impact the market.
While most major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Binance Coin (BNB), showed little movement, a few tokens stood out. Cardano’s ADA saw a 3% increase, and Avalanche’s AVAX jumped 10% after it was added as a network option for Franklin Templeton’s OnChain U.S. Government Money Market Fund (FOBXX).
Bitcoin exchange-traded funds (ETFs) in the U.S. continued to attract investors, with $64 million in inflows recorded. BlackRock’s IBIT ETF led the way with $75 million in inflows, marking six consecutive days of positive momentum. However, the pace of these inflows has slowed, leading some to view the trend cautiously.
In contrast, Ethereum ETFs are facing challenges, with significant outflows continuing for six days straight. These ETFs lost over $800,000 on Thursday alone, bringing the total outflows to more than $458 million since their launch on July 23. This reflects a bearish sentiment toward products linked to the Ethereum blockchain.
The focus now shifts to Fed Chair Jerome Powell’s speech at the Jackson Hole meeting. Traders are looking for signals on future interest rate cuts, which could influence the prices of risk assets like bitcoin. While some analysts expect Powell to confirm a move toward lower borrowing costs, which would likely boost market sentiment, others remain cautious. They suggest that Powell might leave some flexibility in the Fed’s approach, which could lead to mixed reactions in the market.
Overall, the Jackson Hole meeting is expected to be a key event for traders, potentially setting the tone for the coming weeks in the cryptocurrency market.
