Bitcoin
Here are the main news and events affecting the price of Bitcoin
Bitcoin rose to up to US$70,000 on June 3, signaling an optimistic outlook for the leading cryptocurrency. This price increase is believed to be due to some recent developments that are positive for the Bitcoin ecosystem.
Interest rate cuts could come in September
Data of the CME FedWatch tool shows that the probability of the Federal police cut interest rate for a basis point of 25 increased to 51.3%. Meanwhile, the probability of interest rates remaining at 50 basis point is 40.1%. This increase in expectations about a cut in interest rates occurred despite recent inflation generating mixed feelings about the US economy.
The US S&P Global Manufacturing PMI rose to 51.3 in May from 50.0 in April, indicating maximum improvement. However, the ISM Manufacturing PMI fell from 49.2 to 48.7. Investors are still confident that interest rates will be reduced by September. One interest rate reduction It is positive for Bitcoin and the broader crypto market as it will increase investor confidence to invest in these risky assets.
Meanwhile, another positive development for Bitcoin is the fact that the Spot Bitcoin ETFs are once again recording impressive net inflows. These funds registered a total weekly net inflows of US$170.9 million last week. These Spot Bitcoin ETFs also started this new week on the right foot, recording $105.1 in net inflows on June 3.
This development is significant considering these funds were instrumental in sending Bitcoin to a new all-time high (ATH) in March. As such, they could once again serve as a catalyst as the flagship crypto looks to successfully exit the market. $70,000 range and rise above its current ATH of $73,750.
Furthermore, the increased demand for these funds comes at a time when Spot Ethereum ETFs are about to begin trading. These developments paint an ultra-optimistic picture not just for Bitcoin but the entire crypto market.
Bitcoin still far from the top of the market
Crypto Con Crypto Analyst noted in a recent X (formerly Twitter) post that Bitcoin is still far from its market top. He made this observation while alluding to the Logarithmic Market value to realized value, which showed that “there is still good room for growth until the upper end of the cycle”. The crypto analyst, however, added that this cycle may have progressed much further than “it would appear on the surface.”
Crypto analyst Tarekonchain also shared a similar sentiment, stating that Bitcoin has not yet reached its fair market value with its MVRV around 2.3. He further revealed that the price of Bitcoin peaked in previous cycles when the MVRV indicator reached a value of 3.5 or higher, meaning that the bull run is still far from finished.
Featured image created with Dall.E, chart from Tradingview.com