Bitcoin has been making waves, surpassing the crucial resistance level at $71,000 in recent times. This surge in Bitcoin has also sparked a corresponding shift in altcoins.
Recently, Bitcoin (BTC) surged past $71,000, edging closer to its all-time high of $73,628. This rally comes just before the Federal Reserve meeting next week, where investors are anticipating potential rate cuts later in the year.
The possibility of lower interest rates stems from recent economic data indicating easing inflation and a weakening job market in the US, which could influence the Fed’s monetary policy decisions.
Lower interest rates are generally viewed positively for speculative assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, echoed this sentiment in a recent note to investors, stating, “Crypto assets are responding favorably to the decline in rates.”
Another factor driving Bitcoin’s upward momentum is the significant inflow of funds into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that spot Bitcoin ETFs saw a massive inflow of $887 million on Monday, marking the second-highest single-day net inflow since the launch of Bitcoin ETFs.
The total net asset value of BTC spot ETFs has now reached $61.46 billion, with major players like Grayscale Investments, Fidelity Investments, and BlackRock contributing to this surge in investment. Fidelity’s FBTC led the inflows with over $378.7 million, followed by BlackRock’s IBIT with $275 million, and Ark Invest’s ARKB with $138.7 million.
Grayscale’s GBTC, which initially experienced large outflows upon trading commencement, saw inflows of $28.2 million.
With various factors indicating a potential new all-time high (ATH) for Bitcoin, such as the increasing global demand for Bitcoin ETFs and the high correlation between Bitcoin and the Nasdaq 100, the future looks promising for Bitcoin. The broader crypto market is also experiencing positive momentum, with tokens like BNB and TON making significant gains.
In the meme coin ecosystem, Shiba Inu (SHIB) has surged by almost 8%, solidifying its position as the 11th largest digital asset by market capitalization. Overall, the outlook for Bitcoin and the broader crypto market remains optimistic, with potential for further growth and new milestones on the horizon.