Bitcoin has been on a tear, breaking through the crucial resistance level of $71,000 recently. This surge in Bitcoin’s price has also led to a significant movement in altcoins.
Recently, Bitcoin (BTC) reached over $71,000, getting closer to its all-time high of $73,628. This rally comes just before the Federal Reserve meeting next week, as investors are 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. Traditionally, these factors play a role in shaping the Fed’s monetary policy decisions.
Lower interest rates are typically viewed as beneficial for high-risk assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, expressed this view in a recent investor note, saying, “Crypto assets are responding positively to the decline in rates.”
Another factor driving Bitcoin’s upward trajectory 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 inception 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 the pack with inflows exceeding $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 in its price. The global demand for Bitcoin ETFs is rising, with countries like Australia and Thailand introducing these investment options. Additionally, the correlation between Bitcoin and the Nasdaq 100 is at its highest point since early 2023, signaling that a rise in the Nasdaq 100 could lead to a corresponding increase in Bitcoin’s price.
The broader crypto market is also experiencing positive momentum, with BNB, the native token of Binance, surging over 10% in the last 24 hours and reclaiming a market capitalization above $103 billion. Tocoin (TON) has entered the top ten cryptocurrency rankings following a 24-hour surge of 7%, while Shiba Inu (SHIB) has risen by almost 8% to trade at $0.0000259, making it the 11th largest digital asset by market capitalization.
With these developments, it seems that the cryptocurrency market, particularly Bitcoin, is poised for further growth and potential new highs.