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Investing.com – Bitcoin price rose on Tuesday, falling short of recent record highs, as traders awaited further clues on the upcoming halving and key U.S. inflation data.
The price rose 2.5% in the last 24 hours to $71,133.3 by 01:37 ET (05:37 GMT), extending the rally seen over the weekend.
Still, the token remained below a record high above $73,000 as overall risk appetite was dampened by anticipation of key US inflation data that is widely expected to influence the interest rate outlook. The reading is scheduled for Wednesday.
Bitcoin price is buoyed by the halving observation
Bitcoin was mainly supported by the anticipation of the halving event, which is expected to occur later in April with the creation of block no. 840,000 on the Bitcoin blockchain.
The event is expected to halve the rate at which new Bitcoin is mined, potentially leading to a shortage of future supply of the token.
The halving follows the narrative that Bitcoin's scarcity will drive up its price and is a closely watched event for crypto markets. But it also puts pressure on smaller Bitcoin miners by reducing their mining rewards.
Crypto price today: ETH and XRP rise but capital flows slow
Bitcoin's gains spilled over to other cryptocurrencies. The world's No. 2 token rose 7.6% to $3,688.20 while rising 4.3% to $0.61785.
Data from digital asset manager CoinShares showed on Monday that while crypto investment products saw capital inflows in the week ending April 8, the hype surrounding the approval of spot exchange-traded Bitcoin products now appeared to be waning.
Overall, digital assets saw $646 million in inflows last week, with much of that flowing into Bitcoin, which has largely dominated the crypto story in recent months.
Overall, capital flows remained well below the levels seen at the beginning of March, while trading volumes also continued to decline from the highs at the beginning of the year.
The U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs has been the biggest driver of the token's price rise so far in 2024. However, this also resulted in the crypto market becoming even more Bitcoin-focused.
Ethereum experienced $22.5 million in outflows as traders remained averse to the token amid reports of an SEC investigation into the Ethereum Foundation.
The SEC is also expected to decide on spot ETFs on Ethereum at the end of May.
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