Bitcoin Hits $65K for First Time Since Early August, Renewing Investor Interest in Spot ETFs

Bitcoin’s ascent started last week following the U.S. Federal Reserve reducing interest rates for the first time since the Covid pandemic’s onset over four years ago, choosing a 0.5% decrease instead of the initially predicted 0.25% adjustment. Traders are speculating another cut at the Fed’s upcoming meeting on Nov. 7, with current predictions leaning towards another 0.5% reduction, as suggested by the CME FedWatch Tool.

The main reason for the sudden fluctuations in both bitcoin and worldwide markets on Thursday seems to be China, where officials are reportedly contemplating injecting around 1 trillion yuan ($142 billion) into their largest state banks. This move is aimed at stimulating their sluggish economy.

The Shanghai Composite Index in China has surged an additional 3.6%, marking it for one of its strongest weeks in over ten years. European equities climbed around 1%, while U.S. stocks have risen as well, although they’ve slightly dropped from their highest points attained earlier on Thursday.

Additionally, the latest reports influenced the costs of valuable metals, as gold soared to an unprecedented peak surpassing $2,700 per ounce and silver reached its highest level in a dozen years.

As Bitcoin’s price rises, there’s a growing enthusiasm towards U.S.-based spot Bitcoin ETFs that had been waning. For example, BlackRock’s iShares Bitcoin Trust (IBIT) saw significant investments on Wednesday, with approximately $185 million being poured into the fund. This is after an influx of $98.9 million the day before and follows a period of stagnant or negative flows coinciding with Bitcoin’s poor price performance.