In the last 24 hours, the Bitcoin (BTC) price has given a healthy bounce back shooting all the way to $71,000 and eyeing a move to new all-time highs again. This happened just a week before the Fed meeting next week on June 12 and reflects the confidence within investors about the Fed rate cuts coming ahead this year. Currently, the BTC price is just 5% shy of its all-time high levels and entering the new price discovery zone.
Fed Rate Cuts Coming Sooner by November
Traders are increasingly expecting a Federal Reserve rate cut as early as November, following data indicating moderating U.S. inflation and a weaker jobs market. Some Treasury yields experienced their largest two-day declines of the year, easing financial conditions and potentially benefiting speculative assets like cryptocurrencies.
In a note to investors, Tom Couture, digital-asset strategy vice president at Fundstrat Global Advisors, wrote: “Crypto assets are responding positively to the decline in rates”.
Moreover, strong inflows into spot Bitcoin ETFs have also contributed to pushing the BTC price higher. On June 4, Bitcoin spot ETFs experienced a substantial net inflow of $887 million, marking the second-highest single-day net inflow on record.
Key contributors included Grayscale’s GBTC ETF, which saw an inflow of $28.2 million, Fidelity’s FBTC ETF with an inflow of $379 million, and BlackRock’s IBIT ETF, which garnered $274 million. The total net asset value of Bitcoin spot ETFs now stands at $61.46 billion.
There’s a growing demand for Bitcoin ETF products across the world with Australia and Thailand becoming the two latest countries to offer the investment products.
Also, 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 further gains in the Nasdaq 100 may be accompanied by a corresponding rise in Bitcoin
Altcoins Join The Party Along with Bitcoin
Altcoins have experienced a general uptick, with BNB rising over 10% in the past 24 hours to $690, pushing its market value back above $100 billion for the first time since early December 2021. TON has also surged more than 8%, making it the tenth-largest cryptocurrency by market value.
BNB’s more than 100% rally this year reflects improved perceptions about Binance’s outlook. This comes after the exchange pleaded guilty to violating US anti-money-laundering and sanctions laws in November and faced a landmark $4.3 billion penalty.
The post Fed Rate Cut Expectations Push Bitcoin (BTC) Past $71,000, New ATH Soon? appeared first on CoinGape.
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