Fed Rate Cut Expectations Push Bitcoin (BTC) Above $70,000, Is New ATH Nearby?
Over the last 24 hours, the Bitcoin (BTC) price has made a healthy recovery, reaching as high as $71,000 and is aiming to move towards all-time highs again. This comes just a week before the Fed meets next week on June 12 and reflects investors’ confidence in the Fed’s rate cuts this year. Currently, BTC price is only 5% behind all-time highs and is entering new price discovery territory.
Fed Rate Cut Will Be Postponed Until November
Investors increasingly expect the Fed to cut interest rates in early November following data showing U.S. inflation slowing and the labor market weakening. Some Treasury yields experienced their biggest two-day declines of the year, as financial conditions eased and potentially benefited speculative assets such as cryptocurrencies.
“Crypto assets are reacting positively to the decline in rates,” Tom Couture, vice president of digital asset strategy at Fundstrat Global Advisors, wrote in a note to investors.
Moreover, strong inflows into spot Bitcoin ETFs also contributed to the BTC price rise. On June 4, Bitcoin spot ETFs experienced a significant net inflow of $887 million, the second highest single-day net inflow on record.
Contributors included Grayscale’s GBTC ETF with $28.2 million in inflows, Fidelity’s FBTC ETF with $379 million in inflows, and BlackRock’s IBIT ETF with $274 million in inflows. The total net asset value of Bitcoin spot ETFs currently stands at $61.46 billion.
There is a growing demand for Bitcoin ETF products worldwide, with Australia and Thailand becoming the last two countries to offer investment products.
Additionally, the 30-day short-term correlation between Bitcoin and the Nasdaq 100 Index of US technology stocks is currently at its highest level since early 2023. This suggests that any gain in the Nasdaq 100 could be accompanied by a corresponding increase in Bitcoin.
Altcoins Join the Party with Bitcoin
Altcoins experienced an overall rise; BNB increased by over 10% to $690 in the last 24 hours, and its market capitalization exceeded $100 billion for the first time since the beginning of December 2021. TON also rose by more than 8%, making it the largest cryptocurrency. It is the tenth largest cryptocurrency by market cap.
BNB’s more than 100% rise this year reflects improving perceptions of Binance‘s outlook. This comes after the exchange pleaded guilty in November to violating US anti-money laundering and sanctions laws and faced a significant $4.3 billion fine.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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