Bitcoin has been on a bullish streak lately, smashing through the crucial resistance level of $71,000 in a recent surge. This upward momentum in Bitcoin has also led to a ripple effect in the world of altcoins.
Recently, Bitcoin (BTC) surged past $71,000, edging closer to its all-time high of $73,628. This surge comes just before the upcoming Federal Reserve 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 easing inflation and a weakening job market in the US, bolstering the case for a rate cut by the Fed. These economic factors typically 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, reiterated this sentiment in a recent note to investors, stating that “Crypto assets are responding favorably to the decline in rates.”
Another factor driving the upward trajectory of Bitcoin is the significant inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that spot Bitcoin ETFs experienced a substantial 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.
Several other factors point towards a potential new all-time high (ATH) for Bitcoin in the near future. The increasing global demand for Bitcoin ETFs, with countries like Australia and Thailand jumping on board to offer these investment vehicles, could lead to further adoption and price appreciation for Bitcoin.
Furthermore, the 30-day correlation between Bitcoin and the Nasdaq 100, a US technology stocks index, is currently at its highest level since early 2023. This correlation suggests that continued gains in the Nasdaq 100 could drive an increase in Bitcoin’s price. Currently, Bitcoin is up 2.65% to $70,954.58.
The broader crypto market has also witnessed positive momentum, with BNB, the native token of Binance, surging over 10% in the last 24 hours to reclaim a market capitalization exceeding $103 billion. Similarly, Tocoin (TON) has climbed to the top ten cryptocurrencies following a 7% surge, while Shiba Inu (SHIB) in the memecoin space saw an almost 8% increase to reach $0.0000259, making SHIB the 11th largest digital asset by market capitalization.
In summary, the outlook for Bitcoin remains optimistic, with various factors indicating the potential for new ATHs and continued growth in the broader cryptocurrency market.