Bitcoin has been on a wild ride, smashing through the crucial resistance level of $71,000 in recent days. This surge in Bitcoin’s price has also sparked a noticeable shift in the altcoin market.
Recently, Bitcoin (BTC) surged past $71,000, edging closer to its all-time high of $73,628. This price rally comes just before the upcoming Federal Reserve meeting, where investors are hopeful for potential rate cuts later in the year.
With recent economic data showing signs of slowing inflation and a weakening job market in the US, the case for a rate cut from the Fed has strengthened. Lower interest rates are generally seen as a positive for assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, noted in a recent investor note that “Crypto assets are responding positively to the decline in rates.”
In addition to this, the surge in Bitcoin’s price can also be attributed to the significant inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that on Monday, there was a massive inflow of $887 million into spot Bitcoin ETFs, 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 key players like Grayscale Investments, Fidelity Investments, and BlackRock contributing to this surge in investment. Fidelity’s FBTC led the pack with inflows of over $378.7 million, followed by BlackRock’s IBIT with $275 million, and Ark Invest’s ARKB with $138.7 million. Even Grayscale’s GBTC, which initially saw large outflows, received inflows of $28.2 million.
There are several factors pointing towards the possibility of Bitcoin reaching a new all-time high soon. The global demand for Bitcoin ETFs is increasing, with countries like Australia and Thailand now offering these investment vehicles. Additionally, the correlation between Bitcoin and the Nasdaq 100 index is at its highest point since early 2023, indicating that further gains in the tech stocks could drive up Bitcoin’s price.
The broader crypto market is also experiencing positive momentum, with tokens like BNB, TON, and SHIB making significant gains. BNB, the native token of Binance, surged over 10% in the last 24 hours, reclaiming a market capitalization above $103 billion. TON has now entered the top ten cryptocurrencies, while SHIB saw an 8% increase, making it the 11th largest digital asset by market capitalization.
Overall, with the current market trends and positive indicators, it seems like Bitcoin could be on the verge of reaching new heights in the near future.