Blockchain
Leak Reveals Perfect ETF Storm Could Head For Bitcoin After Fed’s $6 Trillion Inflation Triggered Crypto Price Boom
Update 5/16 below. This post was originally published on May 15th
Bitcoin
Bitcoin
suddenly shot higher, higher after the latest US inflation data showed that price pressure resumed its downward trend (some speculate that a “huge” earthquake in China could be just around the corner).
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The price of bitcoin has surpassed $65,000 per bitcoin for the first time since early May as traders increase their bets the Federal Reserve will soon declare victory in its war on inflation and cut interest rates.although Elon Musk recently joined other high-profile investors in warning that “invisible money printing” could destroy the US dollar.
Ahead of key inflation data sending ethereum, XRP
XRP
and the broader cryptocurrency market surged, one bullish bitcoin investor predicted there is “$6 trillion in cash on the sidelines” that could take bitcoin’s price to $150,000 this year, calling the latest bull run of bitcoin “still early”.
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Bitcoin, Ethereum, XRP and cryptocurrency traders are increasingly betting on Federal Reserve Chairman Jerome… [+] Powell will cut interest rates this year, potentially pushing the price of bitcoin higher.
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“Bitcoin is still at the beginning of a positive cycle,” Tom Lee, managing partner of Fundstrat Global Advisors and head of research, said CNBC. “So the idea that it could get to $150,000 this year is still within our base case scenario.”
The latest monthly U.S. consumer price index data showed the pace of U.S. inflation eased slightly in April, up 0.3% from 0.4% in March and against forecasts of economists by 0.4%.
“I think it helps that the Fed is reiterating its view on inflation and its relatively more accommodative stance relative to the market,” Lee said. “So I think that’s why the markets are recovering.”
The price of bitcoin has risen about 75% since the start of the year, rising alongside expectations that the Federal Reserve will begin cutting interest rates this year.
“We know there’s a lot of pent-up demand,” Lee said. “Capital spending is picking up, ISMs [international securities markets] are coming, there’s $6 trillion in cash on the sidelines and people have been cautious for more than two years now.”
Update 5/16: CME, the world’s largest futures exchange operator, is preparing to launch bitcoin spot trading, it was reported by the Financial Times, citing a leak from three anonymous sources.
The unconfirmed plan to open the CME to bitcoin trading is a response to Wall Street’s “increasing demand” for bitcoin following the launch of a fleet of spot bitcoin exchange-traded funds (ETFs) in January, highlighting the quantity of capital remaining “on the sidelines” of the bitcoin and cryptocurrency market.
The 11 spot bitcoin ETFs that exploded on Wall Street earlier this year have taken the financial establishment by storm, soaring to about $50 billion in combined assets under management since January and becoming some of the fastest-growing ETFs ever sign in.
BlackRock’s
Black rock
IBIT’s bitcoin spot ETF has led the pack, growing to nearly $17 billion in assets under management and now looks likely to soon unseat Grayscale’s GBTC as the largest bitcoin fund boasting nearly $18 billion worth of assets of dollars.
However, some bitcoin and cryptocurrency market analysts have downplayed the Federal Reserve’s long-term impact on the price of bitcoin.
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Forbes “Beyond” $20 Trillion by 2030: Jack Dorsey’s Plan to Boost Bitcoin PriceBy Billy Bambrough
The price of bitcoin has surpassed its 2021 peak, boosting the price of ethereum, XRP and cryptocurrencies in general… [+] market.
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“While Federal Reserve policies may induce short-term volatility, they do not fundamentally change the long-term trajectory of bitcoin,” said Leena ElDeeb, research associate at bitcoin and cryptocurrency investment firm 21Shares, in emailed comments. “Therefore, bitcoin currently holds a unique position as a risky and risk-averse asset, navigating unique market dynamics.”
Bitcoin’s price rally this year has been boosted by a fleet of new spot bitcoin ETFs on Wall Street, opening up the bitcoin market to large swaths of investors who view cryptocurrency trades as risky.
Last month there was a major leak from a Wall Street bank Recommended brokers may soon be given the green light to recommend bitcoin spot ETFs to their clients.