• Bitcoin climbed above $64,000 in early U.S. trading hours ahead of a number of Fed speakers, including Chairman Jerome Powell, and after China’s Politburo reportedly pledged continuing support to that country’s economy and markets.
  • Bitcoin could see increased interest from retail and institutional investors following the approval of options trading on Blackrock’s IBIT.
As an analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and seen the rise and fall of various assets. The current surge in Bitcoin’s price, breaking past the $64,000 mark, is reminiscent of the dot-com bubble of the late 90s – a time when everyone was jumping on the bandwagon without fully understanding the underlying technology or the risks involved.Once more, Bitcoin (BTC) aims for the $65,000 threshold last seen during the initial week of August. The upcoming remarks by Federal Reserve Chair Jerome Powell could serve as the next trigger for its price movement.

Traders at QCP Capital in Singapore are paying close attention to Jerome Powell’s speech, as they seek signs of any changes in tone following last week’s FOMC press conference. The conference suggested the possibility of additional monetary easing.

At 13:30 UTC, Powell is anticipated to address the U.S. Treasury Market Conference, with heightened anticipation for another potential U.S. interest rate decrease this year. The Federal Reserve made its initial cuts last week, which sparked a rise in risky assets like bitcoin, and traders estimate a 62% likelihood of an additional 0.5% reduction in November, based on the CME FedWatch Tool.

Gold continues to set new records, increasing by almost 1% to surpass $2,700 per ounce. Reports suggest China could pump $142 billion into its banking sector, accompanied by additional stimulus measures. The Shanghai Composite has experienced a further rise of 3.6%, potentially marking its strongest week in over ten years. U.S. stock futures are showing gains of approximately 1%.

The interest in Bitcoin is increasing among both individual and expert investors. Data from SoSoValue indicates that the total daily net inflows for Bitcoin ETFs surpassed $100 million for two consecutive days, making it a fifth straight day of positive net inflows for these funds.

Conversely, small-scale Bitcoin investors have amassed approximately 35,000 Bitcoins over the past month, indicating growing trust and involvement among this group.

Some believe that the recently approved choices in Blackrock’s Bitcoin Trust (IBIT) could potentially lead to increased value for Bitcoin in the future.

According to an analysis firm called CryptoQuant, granting approval would boost liquidity and draw more investors into the Bitcoin market, moving another step closer to broader acceptance among institutions. Interestingly, the open interest for Bitcoin options on the CME reached a new peak of nearly half a billion on March 12, 2024 – almost five times greater than its highest point in 2023.

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2024-09-26 16:04