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Bitcoin posts longest winning streak since March on rate cut bets
(Bloomberg) — Bitcoin broke above the $71,000 level and flirted with a gain for the fifth straight session, reflecting greater confidence in global markets about the prospect of Federal Reserve interest rate cuts this year.
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The largest digital asset’s streak of daily increases is the longest in three months, leaving the original cryptocurrency at $70,785 as of 8:25 a.m. Wednesday in New York, about 4% lower than the record $73,798 set midway through March.
Traders are pricing in a greater chance of a Fed rate cut as early as November, on the back of data pointing to moderating U.S. inflation and a weaker labor market. Some Treasury bond yields posted their biggest two-day declines of the year, an easing of financial conditions that could help speculative assets such as cryptocurrencies.
“Crypto assets are responding positively to falling rates,” Tom Couture, vice president of digital asset strategy at Fundstrat Global Advisors, said in a note.
I skip BNB
The top five coins, including BNB and Solana, have risen over the past 24 hours. Tokens loved by the meme crowd, such as dogwifhat, are also on the rise.
BNB stems from the ecosystem around Binance, the largest cryptocurrency exchange, and is often seen as an arbiter of sentiment towards the company.
BNB changed hands at around $702, above its previous all-time high of nearly $691 in 2021, CoinMarketCap data shows. BNB’s more than 100% rally this year indicates that perceptions about Binance’s prospects have improved since November, when the exchange pleaded guilty to violations of US anti-money laundering and sanctions laws and was hit with a historic fine of 4.3 billion dollars.
Bitcoin has struggled to maintain climbs above $70,000 in recent days, but optimists are drawing support from a series of inflows into dedicated US exchange-traded funds, as well as Washington’s moves towards a crypto regulatory framework.
Hacking Fallout
In Japan, cryptocurrency exchange DMM Bitcoin said it plans to raise 50 billion yen ($321 million) and invest the funds in purchasing the token to heal customers after suffering a major cyberattack. The platform said it will “be careful” to avoid influencing the Bitcoin market with its planned purchases.
A 30-day short-term correlation between Bitcoin and the Nasdaq 100 index of U.S. technology stocks is about the highest since early 2023, suggesting that further gains in the stock indicator could be accompanied by an upward move in the market leader. cryptocurrency market.
The story continues
Michael Novogratz, the billionaire founder and CEO of Galaxy Digital, told Bloomberg Television that a more positive American political environment for digital assets will likely help push Bitcoin to a record $100,000 or even higher by the end of the year .
Such sentiment is an indication of how memories of the grim bear market in digital assets in 2022 and the resulting scandals, including the fraud that destroyed giant cryptocurrency exchange FTX, have faded, at least for now.
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