Three Reasons Why BTC Price Reclaimed $58,000: Insights from U.Today

Bitcoin, the largest cryptocurrency by market capitalization, has seen a return to trading above $58,000 following a week of volatile price movements driven by various factors.

At one point, Bitcoin surged past $59,000 but subsequently retreated to around $56,000, even falling to a low of $54,339 during Monday’s trading session. After experiencing two consecutive days of losses, Bitcoin ended Friday’s session on a positive note, buoyed by the release of the U.S. Consumer Price Index (CPI) report on Thursday, which showed a core CPI increase of 3.3%, slightly below the projected 3.5%. This outcome appeared favorable for the cryptocurrency market.

Additionally, June marked the first decline in the monthly inflation rate in nearly four years, providing further justification for the Federal Reserve to consider cutting interest rates later in the year. By the latest update, Bitcoin had risen by 2.15% in the past 24 hours, reaching $58,215 after hitting an intraday high of $58,483.

Optimism Returns as Germany Sells Last Bitcoin Stash

In related news, the German government reportedly sold its final Bitcoin on Friday, potentially concluding a series of market-moving sales that had generated speculation in recent weeks. According to blockchain monitoring firm Arkham Intelligence, the government, which has now depleted its main account, likely began offloading its substantial Bitcoin reserves, valued at over $2 billion, through exchanges over the past three weeks.

Bitcoin ETFs Experience Strong Weekly Inflows

After Bitcoin dipped to its lowest price since February, significant buying activity resumed, leading to the highest weekly inflows for Bitcoin exchange-traded funds (ETFs) in over a month. According to data from JPMorgan, spot Bitcoin ETFs attracted $882 million in inflows for the week ending July 11, averaging daily inflows of $175 million—the most since late May.

Among the leading funds, those managed by BlackRock and Fidelity experienced substantial inflows, raising $403 million and $361 million, respectively. In contrast, Grayscale’s ETF faced a continued downward trend, losing approximately $87 million.