Surge linked to U.S. GDP rise and Fed's interest rate cuts; ETF interest grows.
Bitcoin's value has recently surged past the $65,000 mark, reaching levels not seen since early August. This significant rise comes on the heels of a 3% growth in the U.S. economy, as reported by the latest GDP figures. The positive economic outlook, coupled with a decrease in jobless claims, has contributed to a bullish sentiment in the cryptocurrency market.
The recent rally in Bitcoin's price can be attributed to several economic policies. The U.S. Federal Reserve's decision to cut interest rates has played a crucial role, as has the anticipation of relaxed monetary policies globally. Notably, China is expected to introduce stimulus measures, including potential capital injections into state banks. These factors have collectively boosted investor confidence, driving Bitcoin's price upwards.
With Bitcoin's price exceeding $65,000, over 90% of BTC holders are now in profit. This level of profitability, last observed in July, raises questions about potential market corrections. Historically, similar profit levels have led to price crashes as investors sell to realize gains. Recent data indicates that large investors, known as 'whales,' have offloaded $1.28 billion worth of Bitcoin, suggesting possible short-term volatility in the market.
The surge in Bitcoin's price has also renewed interest in U.S.-based spot Bitcoin ETFs. Notably, BlackRock's iShares Bitcoin Trust has seen significant inflows, highlighting growing investor interest. This trend is part of a broader positive movement in the crypto market, with other cryptocurrencies like experiencing gains.
