The price of Bitcoin (BTC) has recovered well over the past day, reaching $71,000, which indicates that it may rise to new all-time highs once more. This occurred just one week before the Federal Reserve meeting on June 12, which means investors’ optimism regarding the timing of this year’s Fed rate decreases. Right now, Bitcoin’s price is just 5% below its peak and has entered a new price discovery zone.
Fed Rate Cuts Could Happen as Soon as November
In response to statistics showing a slowdown in U.S. inflation and a weakening labor market, traders are beginning to anticipate a rate cut from the Federal Reserve as early as November. The year’s biggest two-day drops in some Treasury yields eased financial conditions and would help speculative assets like cryptocurrency.
“Crypto assets are responding positively to the decline in rates,” stated Tom Couture, vice president of Fundstrat Global Advisors’ digital asset strategy, in a note to clients.
Furthermore, significant inflows into spot Bitcoin ETFs have helped drive up BTC’s price. With a substantial net inflow of $887 million on June 4, Bitcoin spot ETFs saw their second-highest single-day net inflow ever.
Three major donors were the FBTC ETF from Fidelity, which received $379 million; the IBIT ETF from BlackRock, which received $274 million; and the GBTC ETF from Grayscale, which received $28.2 million. The combined net asset value of Bitcoin spot ETFs is $61.46 billion.
The demand for Bitcoin ETF products is rising globally, and the two most recent countries to offer investment products are Australia and Thailand.
Furthermore, the Nasdaq 100 Index of U.S. technology equities and Bitcoin’s 30-day short-term correlation are at their highest point since early 2023. This implies that additional increases in the Nasdaq 100 might result in a commensurate rise in Bitcoin.
Altcoins Attend The Event Besides Bitcoin
other cryptocurrencies have seen a general upswing. BNB, for example, has increased in value by over 10% in the last day to $690, putting its market worth back above $100 billion for the first time since early December 2021. Additionally, TON has increased by almost 8%, making it the tenth-largest cryptocurrency in market value.
This year’s more than 100% surge in BNB indicates growing confidence in Binance’s prospects. This comes after the exchange, facing a historic $4.3 billion fine, entered a guilty plea in November to break U.S. anti-money-laundering and sanctions rules.
