- Bitcoin hit $65,000 for the first time since August, fueling investor interest
- US Fed impulse the markets and Chinese plans to reinvest in its economy
- Spot Bitcoin-ETFs are once again attracting capital, such as BlackRock recorded inflows of $185M
- Investor confidence is reflected in the strength of global markets and precious metals
Just recently we wrote that Bitcoin was experiencing consolidation on the long side, but noted that the market could now deliver surprises.
And now we’re seeing Bitcoin hit $65K for the first time since early August, and rising interest in spot ETFs is resuming, along with a resurgence in markets and rising stocks and assets.
In particular, BlackRock, a regular guest on most crypto reviews, has seen capital inflows, while gold prices have seen record gains and momentum has also reached silver.
This continued momentum, set by last week’s interest rate cut, has affected entire economies as well, with China allocating huge investments to support its economy.
Details on the Rising Bitcoin and Bitcoin ETFs
So, the Fed’s 0.5% cut and the confidence of many investors that rates will continue to fall has revitalized the market, both traditional finance and the crypto sector.
Bitcoin reached $65K for the first time since early August, showing a 2.7% increase over the last 24 hours, and BlackRock recorded $185 million in inflows on Wednesday, which followed previous flows of $98.9 million.
Meanwhile China, with its stagnant economy, has also experienced optimism from lower interest rates and is considering injecting 1 trillion yuan ($142B) into large state-owned banks.
The Shanghai Composite jumped another 3.6% and European stocks rose about 1%, with gold again hitting an all-time high of $27K per ounce and silver hitting its strongest level in 12 years.
Conclusion
Is the FED’s interest rate cut too much or too late, and is it a temporary improvement and short-term stimulus?
Will economic growth catch up with the opportunities that will help address the record unrealized costs of the largest banks and others that have accumulated over time?
It’s very much an Achilles and Turtle race, however, we can’t know yet what rates we are going to see next, stay tuned.
