Bitcoin has been making significant strides, surpassing the crucial resistance level of $71,000 in a recent surge. This surge in Bitcoin has also had a ripple effect on 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, with investors hopeful for potential rate cuts later in the year.
The possibility of lower interest rates has been buoyed by recent economic data indicating a slowdown in inflation and a weakening job market in the US. These factors typically play a role in the Fed’s monetary policy decisions.
Lower interest rates are generally viewed as favorable for speculative assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, reiterated this view in a recent investment note, stating, “Crypto assets are responding positively to the decrease in rates.”
One of the driving forces behind Bitcoin’s upward momentum is the significant inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted the massive $887 million inflow 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 has now reached $61.46 billion, with major players like Grayscale Investments, Fidelity Investments, and BlackRock contributing to this surge in investment. Fidelity’s FBTC led the way with over $378.7 million in inflows, followed by BlackRock’s IBIT with $275 million, and Ark Invest’s ARKB with $138.7 million.
There are several other factors pointing towards a possible new all-time high for Bitcoin. The increasing global demand for Bitcoin ETFs, with Australia and Thailand jumping on board, could lead to broader adoption and a potential price increase. Additionally, the strong correlation between Bitcoin and the Nasdaq 100 suggests that further gains in the tech stock index could drive up Bitcoin’s price.
The broader crypto market has also seen positive momentum, with BNB, the native token of Binance, surging over 10% to reclaim a market capitalization above $103 billion. Tocoin (TON) has entered the top ten cryptocurrency rankings following a 7% surge, while memecoin Shiba Inu (SHIB) saw an almost 8% increase, pushing it to become the 11th largest digital asset by market capitalization.
Overall, the outlook for Bitcoin remains bullish, with various factors aligning to potentially propel it to new heights.