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Bitcoin pulled back on Thursday after hitting a new high on profit-taking, while Ethereum remained steady near its own all-time high. The world’s largest cryptocurrency had surged earlier in the week on optimism over the increased probability of a September US interest rate cut and growing corporate interest in digital assets. Cryptocurrencies could continue to benefit from the improved risk appetite among investors and could continue to see upside potential despite correction risks. ETF inflows added some support to Bitcoin. BTC ETF inflows remained positive but were at a relatively low level with only USD 86.9 million on Wednesday. Conversely, Ethereum saw an acceleration in inflows and continued to benefit from large volumes, outpacing its bigger counterpart, seeing USD 729.1 million in capital directed to ETH ETFs on Wednesday. In terms of regulation, the White House and the SEC have advanced initiatives to modernize US digital asset rules, including Project Crypto and new legislative proposals. Regulatory and legal developments could continue to foster a positive atmosphere in the crypto market and could help drive more investment in crypto assets and alleviate pullbacks. |
