Bitcoin has been making significant strides, breaking through the crucial resistance level of $71,000 in a recent surge. This upward momentum has not only impacted Bitcoin but has also caused a shift in the altcoin market.
Recently, Bitcoin (BTC) surged past $71,000, edging closer to its all-time high of $73,628. This surge comes just before the Federal Reserve meeting next week, where investors are anticipating 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 softening job market in the US. These factors typically influence the Fed’s monetary policy decisions.
Lower interest rates are generally considered beneficial for speculative assets like Bitcoin. Tom Couture, a digital asset strategist at Fundstrat Global Advisors, emphasized this view in a recent investor note, stating, “Crypto assets are reacting positively to the decrease in rates.”
Another factor contributing to Bitcoin’s upward trend is the substantial inflow of funds into spot Bitcoin Exchange-Traded Funds (ETFs). Blockchain researcher Collin Brown highlighted that spot Bitcoin ETFs received a massive $887 million inflow on Monday, 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 playing significant roles in this surge. Fidelity’s FBTC led the inflows with over $378.7 million, followed by BlackRock’s IBIT with $275 million, and Ark Invest’s ARKB with $138.7 million.
Several factors point towards a potential new all-time high for Bitcoin in the near future. Global demand for Bitcoin ETFs is rising, with Australia and Thailand recently introducing these investment vehicles. Additionally, the correlation between Bitcoin and the Nasdaq 100 is at its highest point since early 2023, suggesting that further gains in the Nasdaq 100 could drive Bitcoin’s price higher.
In the broader crypto market, positive momentum is evident. BNB, Binance’s native token, surged over 10% in the last 24 hours, reclaiming a market capitalization above $103 billion. Tocoin (TON) has entered the top ten largest cryptocurrencies following a 7% surge, while meme coin Shiba Inu (SHIB) saw an almost 8% increase, making it the 11th largest digital asset by market capitalization.
With these developments, the cryptocurrency market is buzzing with anticipation and excitement, setting the stage for potential further growth and new milestones for Bitcoin and other digital assets.