Cryptocurrency prices rose during trading on Tuesday, despite continued concerns that rising energy prices could lead to renewed inflationary pressures, which might prompt central banks to keep interest rates high for longer and limit investors' appetite for high-risk assets, amid ongoing tit-for-tat attacks between the United States and Iran.
In a notable development, Strategy&, owned by billionaire Michael Saylor, announced it raised approximately $467 million through an initial public offering (IPO), bringing its cash reserves to nearly $3 billion. The company added in a statement yesterday that it did not execute any Bitcoin transactions during the seven days ending July 12, maintaining its cryptocurrency holdings unchanged.
Meanwhile, data reported by Bloomberg showed that U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net inflows of $197 million during the week ending July 10, ending an eight-week streak of outflows and marking the first positive weekly inflow since May, indicating a relative improvement in investor confidence towards digital assets.
In trading, Bitcoin rose 0.44%, or $275.75, to trade at $62,488.65. Ethereum climbed 0.56%, or $9.82, to $1,778.31, while Ripple gained 0.47%, or $0.005, to trade at $1.0664.
Cryptocurrencies are greatly affected by macroeconomic developments and geopolitical conditions, as rising energy prices increase fears of inflation, which may prompt central banks, especially the Federal Reserve, to maintain a tight monetary policy for a longer period.
Conversely, inflows into Bitcoin exchange-traded funds (ETFs) are an important indicator of institutional investor sentiment, as they often reflect improved confidence in the digital asset market and may contribute to supporting prices, even amid continued uncertainty in global markets.
