Investing.com — Prices fell slightly on Tuesday, staying within the trading range set over the past two months, as the focus remained on U.S. inflation data for further clues on interest rates .
Despite seeing capital inflows into investment products for the first time in five weeks, the recovery in capital inflows into crypto investment products has translated into little price movement.
Bitcoin has fallen 1.3% over the past 24 hours to $61,856.1 by 7:35 pm ET (11:35 pm Japan time).
Bitcoin fails to take advantage of improved crypto asset flows
The world's largest cryptocurrency received limited support from data showing weekly inflows into crypto investment products, particularly physical Bitcoin exchange-traded funds, for the first time in five weeks.
Inflows into crypto products totaled $130 million in the week ending May 12, with the majority going to the United States, according to data from digital asset management firm CoinShares.
The launch of a spot Bitcoin ETF in Hong Kong also triggered some inflows.
However, despite improved capital flows, overall trading volumes for crypto investment products remained dismal, remaining well below Bitcoin's lifetime high in March.
The world's largest cryptocurrency has hovered between $60,000 and $70,000 over the past two months, with a mix of interest rate fears, regulatory uncertainty and waning ETF hype providing little stimulus to actual price action. The market has settled into a narrow trading range. The long-awaited token halving event was also a huge success.
Cryptocurrency prices today: Altcoins perform mixed as inflation concerns limit optimism
On Tuesday, the broader cryptocurrency market also tracked Bitcoin's rise. The world's second-largest token fell 1.9% to $2,906.85, but was flat with a 0.4% gain.
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Meme Coin had an even better rally, tracking overnight gains in meme stocks such as: gamestop company (NYSE:NYSE:) and Wall Street's AMC Entertainment Holdings Inc (NYSE:NYSE:). rose more than 5%, and new meme coin PEPE rose more than 20%.
Still, overall crypto prices remained largely subdued in anticipation of important US inflation statistics this week.
Inflation data is expected to be released later on Tuesday, while the more closely watched inflation data is expected to be released on Wednesday.
Both measures are widely expected to be factored into the U.S. interest rate outlook, and come amid persistent concerns that interest rates will remain high for an extended period of time.
The prospect of higher U.S. interest rates bodes poorly for the cryptocurrency market, given that it typically thrives on low interest rates and high liquidity.
UK election unlikely to impact country's crypto regulation plans
Industry insiders said in interviews with CoinDesk that the upcoming UK election is unlikely to derail progress on crypto regulation.
No date has been announced for the election, but it is expected to be held later this year.
The ruling Conservative Party, which has been in power since 2010, has introduced several measures against virtual currency with the aim of turning the UK into a virtual currency hub from 2022. The Financial Conduct Authority (FCA) has introduced a Markets Bill that would allow it to regulate cryptocurrencies as a financial activity.
The Conservative Party has also promised to enact stablecoin and staking legislation before the next election, a goal many believe is achievable.
Adam Jackson, policy director at Innovate Finance, said the country needs secondary legislation that would formally force the FCA to regulate cryptocurrencies, including stablecoins.
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“That’s what the government said it would do,” Jackson told CoinDesk. “I haven't heard anything else about why that's not possible. So, all things being equal, those powers should be given by the national election.”