Bitcoin has been making significant strides, surpassing the key resistance level of $71,000 in a recent surge. This surge in Bitcoin has also sparked a corresponding uptrend in altcoins.
Recently, Bitcoin (BTC) climbed over $71,000, edging closer to its all-time high of $73,628. This surge comes just before the Federal Reserve meeting next week, with investors anticipating potential rate cuts later in the year.
The possibility of lower interest rates has been fueled by recent economic data indicating a slowdown in inflation and a weakening job market in the US, which could prompt the Fed to consider rate cuts. Typically, these economic factors influence the Fed’s decisions on monetary policy.
Lower interest rates are generally viewed positively for speculative assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, expressed this sentiment in a recent investor note, stating that “Crypto assets are responding positively to the decline in rates.”
Another factor driving the upward movement of Bitcoin is the significant inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that spot Bitcoin ETFs saw a substantial 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 now stands at $61.46 billion, with major players like Grayscale Investments, Fidelity Investments, and BlackRock contributing to this surge in investment. Fidelity’s FBTC led with inflows of over $378.7 million, followed by BlackRock’s IBIT with $275 million, and Ark Invest’s ARKB with $138.7 million.
The possibility of a new all-time high (ATH) for Bitcoin is on the horizon, with various factors indicating a potential surge. The global demand for Bitcoin ETFs is increasing, with countries like Australia and Thailand joining in offering these investment vehicles. This could lead to wider adoption of Bitcoin and a subsequent price increase.
Moreover, the 30-day correlation between Bitcoin and the Nasdaq 100 is currently at its highest point since early 2023, suggesting that further gains in the Nasdaq 100 could drive Bitcoin’s price up. Currently, Bitcoin is up by 2.65% to $70,954.58.
The broader crypto market is also witnessing positive momentum, with tokens like BNB, Tocoin (TON), and Shiba Inu (SHIB) experiencing significant gains. BNB, the native token of Binance, surged over 10% to reclaim a market capitalization above $103 billion, while Tocoin (TON) moved up to the top ten cryptocurrencies following a 7% surge. SHIB, a memecoin, increased by nearly 8% to trade at $0.0000259, making it the 11th largest digital asset by market capitalization.