- Bitcoin is on the rampage, breaching the key resistance level at $71,000 recently.
- The rally and prospect of Bitcoin has stirred a corresponding shift in altcoins.
Bitcoin (BTC) recently soared over $71,000, inching closer to its all-time high of $73,628. This rally comes ahead of the Federal Reserve meeting next week, with investors anticipating rate cuts later this year.
Hopes for Lower Interest Rates
Recent economic data suggests moderating inflation and a softening job market in the US, strengthening the case for a rate cut from the Fed. Typically, these factors influence the Fed’s monetary policy decisions.
Lower interest rates are generally seen as positive for speculative assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, echoed this sentiment in a recent investor note, stating, “Crypto assets are responding positively to the decline in rates”
Another factor propelling the upward movement of Bitcoin is the strong inflows into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that spot Bitcoin ETFs experienced a massive inflow of $887 million on Monday. This marks the second-highest single-day net inflow since the launch of Bitcoin ETF.
📈 BREAKING: #Bitcoin spot ETFs experienced a massive inflow of $887 million on June 4, marking the second highest single-day net inflow in history and pushing #BTC price back above $71,000. Here’s a breakdown of the inflows for the top ETFs:
▶️Fidelity: +$378.7MM
▶️IBIT… pic.twitter.com/LraqbQh95d— Collin Brown (@CollinBrownXRP) June 5, 2024
The total net asset value of BTC spot ETFs now stands at $61.46 billion. Major players like Grayscale Investments, Fidelity Investments, and BlackRock all contributed to this surge in investment. Fidelity’s FBTC clinched the first position with inflows of over $378.7 million, BlackRock’s IBIT came second with $275 million, while Ark Invest’s ARKB was third with $138.7 million.
Grayscale’s GBTC which began recorded large outflows shortly after trading commenced saw inflows of $28.2 million.
Is New ATH Imminent for Bitcoin
There are several other factors that suggest that Bitcoin may see a new ATH soon. First,
the global demand for Bitcoin ETFs is on the rise, with Australia and Thailand joining the bandwagon and offering these investment vehicles as reported earlier by Crypto News Flash. If other jurisdictions follow this movement, Bitcoin will see more adoption which could result in a further increase in its price.
Meanwhile, the 30-day correlation between Bitcoin and the Nasdaq 100, an index of US technology stocks, is currently at its highest point since early 2023. This suggests that further gains in the Nasdaq 100 could lead to a corresponding rise in Bitcoin’s price. At the moment, it is up 2.65% to $70,954.58.
The broader crypto market has also seen positive momentum. BNB, the native token of Binance, surged over 10% in the last 24 hours, reclaiming a market capitalization above $103 billion. This rally reflects improved investor sentiment towards Binance after it was fined $4.3 billion for violations of the US anti-money laundering Act, per earlier reports from Crypto News Flash.
Tocoin (TON) has now moved to the ten largest cryptocurrency hierarchy following its 24-hour surge of 7%. In the memecoin ecosystem, Shiba Inu (SHIB) increased by almost 8% to trade at $0.0000259. As a result, SHIB has risen to become the 11th largest digital asset by market capitalization.
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