Bitcoin has extended its winning streak to five consecutive sessions, edging closer to the $71,000 mark amidst growing expectations of Federal Reserve interest-rate cuts later this year.
The cryptocurrency’s sustained upward momentum marks its longest series of daily gains in three months, with Bitcoin trading at $70,785 as of 8:25 a.m. Wednesday in New York, just 4% below its all-time high of $73,798 reached in mid-March.
Investors are increasingly factoring in the likelihood of a Fed rate cut as early as November, spurred by indications of moderating US inflation and a softer job market. This shift in market sentiment has led to a notable decline in Treasury yields over the past two days, easing financial conditions and bolstering speculative assets like cryptocurrencies.
According to Tom Couture, vice president of digital-asset strategy at Fundstrat Global Advisors, the positive response from crypto assets can be attributed to the decrease in interest rates.
The rally in cryptocurrencies is not limited to Bitcoin alone, with other top coins such as BNB and Solana experiencing gains over the past 24 hours. BNB, in particular, has surpassed its previous all-time high from 2021, reflecting improved sentiment towards the Binance ecosystem despite regulatory challenges earlier in the year.
While Bitcoin has faced resistance in maintaining its position above $70,000, optimism persists due to increased inflows into dedicated US exchange-traded funds and ongoing developments towards a regulatory framework for cryptocurrencies in Washington.
Elsewhere, in Japan, crypto exchange DMM Bitcoin announced plans to raise funds to compensate customers affected by a recent hack, highlighting ongoing challenges in the industry.
Amidst these developments, Bitcoin’s correlation with the Nasdaq 100 Index of US technology stocks has reached its highest level since early 2023, suggesting a potential alignment between equity market gains and further appreciation in the cryptocurrency market.
Michael Novogratz, founder and CEO of Galaxy Digital, expressed optimism about Bitcoin’s future, predicting a record high of $100,000 or higher by the end of the year, buoyed by a more favorable regulatory environment in the United States. This positive sentiment reflects a shift from the uncertainties and scandals that plagued the cryptocurrency market in previous years.
Featured Image: Freepik
Please See Disclaimer
