Bitcoin
Why is Bitcoin up today?
In the last 24 hours, Bitcoin (BTC) is up nearly 5% as it surpasses the crucial $65,000 mark, according to CoinMarketCap. Furthermore, with a number of macroeconomic factors coming into play, the reason for its recent rise is multifaceted. In fact, the leading cryptocurrency is benefiting from a perfect storm of data and speculation.
The increase arrives together with the release of inflation figures in the USA. Specifically, the CPI shows that underlying inflation in the United States has reached a 3-year low, falling to 3.4%. Subsequently, the Bitcoin investment market saw increasing participation from some of the world’s largest banks.
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BTC hits $65,000 as inflation falls
The digital asset market has long been led by Bitcoin and continues to depend on its performance. Since the long-awaited Bitcoin halving took place in April, the market has noticed a slight slowdown compared to the beginning of the year. However, this appears to be changing with the asset’s recent surge.
In fact, Bitcoin (BTC) reached the $65,000 level, with the asset rising over the last 24 hours. A large part of the impulse is linked to the inflation data which arrived on Wednesday. Specifically, it showed that inflation fell in the United States.
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This development continues to be critical due to its implications for interest rate reductions in the United States. O Federal Reserve implored a wait-and-see approach to such cuts, while ensuring that they will occur in 2024.
Cooperating inflation data increases the likelihood that these things will happen sooner rather than later. However, there is still concern about the speed of the slowdown in inflation, which could prevent multiple cuts from being made this year.
While inflation is playing a role in Bitcoin’s rise this week, this is not the full story. Alternatively, the Spot Bitcoin ETF market appears to be catapulting the asset to its recent levels.
Do Bitcoin ETFs Drive Price Increases?
Read too: Spot Bitcoin ETFs are already the most popular at BlackRock and Fidelity
BTC rose today due to increasing reports of exposure to the Bitcoin ETF. In fact, a number of financial institutions have emerged with significant stakes in Bitcoin investment offerings. Subsequently, US Securities and Exchange Commission (SEC) filings massively boosted the asset’s value this week.
The list of banks that recently disclosed Bitcoin ETF exposure includes JP Morgan It is Wells Fargothe first and third largest banks in the United States, respectively.
The list continued to grow as Switzerland’s largest bank, UBS, and one of Canada’s Big Five, Bank of Montreal, also disclosed Bitcoin ETF holdings.
Furthermore, entities such as Wisconsin State Investment Board disclosed $99 million in BlackRock’s Spot Bitcoin ETF. These developments have increased the overall value of the inflow of institutional interest.
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However, the influence of the ETF market does not stop there, as there are still expectations of institutions that can still enter. Specifically, Vanguard announced the hiring of BlackRock’s former head of global ETFs, Salim Ramji, as its new CEO.
The investment management company had already banned all spot Bitcoin ETFs in January this year. However, Ramji’s presence made many investors speculate a change in the company.
The adoption of the Bitcoin ETF market would be yet another reliable and prominent company entering the fray. Subsequently, the upward trend in price should continue as more institutional investors introduce exposure to Bitcoin into their portfolios.