- Bitcoin struggles to break $69K, consolidating around $65K after strong institutional ETF inflows of nearly $1 billion this week.
- Market dominance spikes to 59.75%, impacting Ethereum as it slumps to 0.03625.
- Tether faces renewed scrutiny amid “investigation” reports, causing price fluctuations.
This past week brought heightened volatility across the crypto market. Bitcoin (BTC) attempted but ultimately failed to break through its previous high of $69,500, a level last reached in July. After a swift retracement, BTC found solid support at $65,000. It revisited the level twice in the week and is now consolidating around it.
Institutional Interest in Bitcoin Remains Robust
Meanwhile, institutional interest in Bitcoin remains strong. Net inflows into Bitcoin ETFs reached $997.7 million in the week, the third straight week of positive movement. Aside from Tuesday, when Bitcoin revisited $65K, inflows were positive throughout the week.
Moreover, last week, the demand for U.S. spot Bitcoin ETFs reached a six-month high, with net inflows of approximately $4.4 billion in the past 30 days. Presently, Bitcoin ETFs have seen $22 billion in net flows since January.
Bitcoin Market Dominance Spiked
Meanwhile, Bitcoin’s market dominance climbed to a weekly high of 59.75%, further delaying the prospect of the much-anticipated altcoin season. This rise in dominance has also impacted Ethereum.
Specifically, the ETH/BTC trading pair broke key support at 0.03850 and slumped by 5.85% to reach 0.03625. Market sentiment suggests that Bitcoin’s dominance could persist as it approaches all-time high levels.
Chart by CoinMarketCap
Tether’s Supposed Investigation
Meanwhile, Tether (USDT) faced renewed scrutiny as reports of a possible U.S. government investigation surfaced. These allegations rattled the stablecoin, pushing its price down to $0.9965 before rebounding to the $0.9980 range. Tether CEO Paolo Ardoino has denied the claims, yet concerns linger, as Tether has been under similar scrutiny before.
Geopolitical Tension Impacting Markets
Geopolitical tensions also affected global and crypto markets. In the Middle East, escalating hostilities saw Israel launch retaliatory strikes against Iran following missile attacks earlier in the month.
These developments drove some selling pressure, with the Dow Jones Industrial Average (DJIA) and S&P 500 dipping by 0.61% and 0.03%, respectively. BTC briefly fell to $65,500 amidst the market unease.
Now, attention turns to the upcoming non-farm payroll data due Friday, which will shed light on potential Federal Reserve actions. Current market odds suggest a high 95.1% likelihood of a 25 basis point rate cut in November, with investors hoping for minimal surprises.
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