Bitcoin surpassed the $61,000 mark early Tuesday, spurred by the second-largest inflow of the month into U.S. spot exchange-traded funds (ETFs) holding the cryptocurrency.
The price surge has triggered a wave of liquidations, wiping out over $100 million in derivative holdings within the last 24 hours, Nariametrics reported Tuesday.
While there are currently few clear market catalysts, traders are closely monitoring potential volatility later in the week as Federal Reserve Chair Jerome Powell is expected to speak at the Jackson Hole conference on Friday.
Powell is anticipated to confirm a shift toward lower borrowing costs next month, a move that typically boosts trader optimism by fostering growth in riskier assets.
However, some market participants remain cautious due to the uncertainty surrounding proposed Bitcoin ETF options.
Data from SoSoValue revealed that net inflows into Bitcoin spot ETFs exceeded $61 million, the highest since August 8, when inflows reached $192 million.
Notably, Bitwise’s BITB experienced $25 million in outflows, while BlackRock’s IBIT led the market with $92 million in inflows.
Bitcoin’s break past the critical $60,000 level follows several days of intense trading activity. As the cryptocurrency approaches its 200-day moving average at around $63,000, market watchers suggest that surpassing this level could reignite trader enthusiasm and potentially lead to a sustained upward trend.
