As a seasoned crypto investor, I’ve been through numerous market fluctuations, and the recent price surge of Bitcoin (BTC) to $71,000 is an exciting development for me. The prospect of Fed rate cuts in the near future, as early as November, adds confidence to investors, pushing BTC closer to its all-time highs.
Over the past day, Bitcoin (BTC) has experienced a strong rebound, reaching $71,000, with potential for even higher prices near new record highs. This surge comes a week before the anticipated Fed meeting on June 12 and represents investor optimism regarding expected interest rate reductions in 2021. The current Bitcoin price is only 5% below its all-time high, entering unexplored pricing territory.
Fed Rate Cuts Coming Sooner by November
As an analyst, I’ve noticed a growing expectation among traders for the Federal Reserve to implement a rate cut as soon as November. This anticipation stems from recent data suggesting a deceleration in U.S. inflation and a weaker jobs market. Consequently, some Treasury yields have experienced their most significant two-day declines of the year, resulting in easier financial conditions that could positively impact speculative assets like cryptocurrencies.
“I’ve observed that crypto assets have been reacting favorably to the current decrease in interest rates.”
Additionally, large amounts of money flowing into Bitcoin spot Exchange-Traded Funds (ETFs) have been a significant factor in boosting the price of Bitcoin. For instance, on June 4th, these Bitcoin ETFs recorded an impressive net inflow of approximately $887 million, which ranks as the second-largest single-day inflow ever.
As a researcher studying the recent trends in Bitcoin Exchange-Traded Funds (ETFs), I can share that Grayscale’s GBTC saw an inflow of approximately $28.2 million, Fidelity’s FBTC experienced an influx of around $379 million, and BlackRock’s IBIT gathered roughly $274 million in new investments. The combined net asset value of these Bitcoin spot ETFs now reaches a substantial $61.46 billion.
The interest in Bitcoin Exchange-Traded Funds (ETFs) is increasing globally, with Australia and Thailand being the most recent additions to the list of countries offering these investment instruments.
The connection between Bitcoin and the Nasdaq 100 Index has been particularly strong recently, with their 30-day correlation reaching its peak since the beginning of 2023. This implies that any potential advancements in the Nasdaq 100 could be mirrored by a similar upward trend in Bitcoin.
Altcoins Join The Party Along with Bitcoin
As a researcher studying the cryptocurrency market, I’ve noticed an upward trend in altcoins recently. Specifically, Binance Coin (BNB) has seen a significant increase of over 10% in the last 24 hours, pushing its market value back above $100 billion for the first time since early December 2021, reaching a price of approximately $690. Similarly, The Open Network (TON) has experienced a surge of more than 8%, making it the tenth-largest cryptocurrency by market capitalization once again.
The significant surge of over 100% in BNB‘s value this year signifies enhanced views regarding Binance’s future prospects. This development follows the exchange’s admission of guilt for breaching US anti-money-laundering and sanctions regulations in November, resulting in a monumental $4.3 billion fine.
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2024-06-05 09:10