Bitcoin has surged past the key resistance level of $71,000 in a recent bullish move. This spike in Bitcoin’s value has also caused a ripple effect in the world of altcoins.
BTC recently broke through the $71,000 mark, edging closer to its all-time high of $73,628. This surge comes just before the Federal Reserve’s upcoming meeting, where investors are expecting 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. These factors often influence the Fed’s decisions on monetary policy.
Lower interest rates are generally viewed positively for assets like Bitcoin, which are considered speculative. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, highlighted this sentiment in a recent note to investors, stating that “Crypto assets are responding positively to the decline in rates.”
In addition to the rate cut expectations, Bitcoin’s upward momentum is also being driven by significant inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown reported a massive inflow of $887 million into spot Bitcoin ETFs on Monday, marking the second-highest single-day net inflow since the launch of Bitcoin ETF.
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 all 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.
There are several factors hinting at a potential new all-time high for Bitcoin. The global demand for Bitcoin ETFs is increasing, with countries like Australia and Thailand jumping on board to offer these investment opportunities. A rise in adoption could further boost Bitcoin’s price.
Furthermore, the correlation between Bitcoin and the Nasdaq 100 index is currently at its highest point since early 2023, indicating that gains in the Nasdaq 100 could lead to a rise in Bitcoin’s price. At the moment, Bitcoin is up 2.65% to $70,954.58.
The broader crypto market is also experiencing positive momentum, with tokens like BNB and TON seeing significant gains. Even meme coins like Shiba Inu have surged, with SHIB becoming the 11th largest digital asset by market capitalization.
In conclusion, Bitcoin’s recent surge and the positive momentum in the broader crypto market suggest promising times ahead for digital assets. Investors are closely monitoring these developments as they anticipate potential new highs for Bitcoin.