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Economic data fuels Bitcoin’s surge to $71,000
Bitcoin (BTC) has recently seen a significant boom, surpassing $71,000, thanks to positive macroeconomic indicators and growing interest from institutional investors.
This surge, the longest in three months for the cryptocurrency, stems from anticipation of potential rate cuts by the Federal Reserve. Such adjustments could favor speculative assets like Bitcoin.
Institutional confidence supports Bitcoin’s resurgence
Market optimism has grown regarding the potential lowering of interest rates by the Federal Reserve this year. Traders now see a higher probability of a rate cut as early as November.
This shift follows relationships indicating a slowdown in inflation in the United States and a weaker job market, along with notable declines in yields on some Treasury securities. Financial conditions appear to be easing, which could benefit speculative investments, including cryptocurrencies. At the time of writing, Bitcoin’s value has reached $71,177, an increase of more than 4% over the past week.
To know more: 7 Best Cryptocurrency Exchanges in USA for Trading Bitcoin (BTC).
BTC price trend. Source: BeInCrypto
Banks such as JPMorgan Chase & Co. and Citigroup Inc. foresee the Federal Reserve could reduce rates as early as next month. Despite April’s skepticism, traders now expect stable rates through November.
However, the recent trend suggests a possible faster adjustment. The global bond market also recorded its longest rally since December.
The release of Friday’s jobs data will be key ahead of the Fed’s rate-setting meeting next week. It will reveal whether traders or bank forecasters align better with the direction of the Fed’s monetary policy.
Amid these developments, Bitcoin attracts institutional buyers such as Semler Scientific (SMLR). Pending market conditions, the healthcare company has decided to make Bitcoin its main treasury asset.
He acquired 581 Bitcoins for $40 million, bringing his total assets to 828 Bitcoins worth $57 million. Semler Scientific Views Bitcoin as a store of stable value and a worthwhile investment. The company appreciates its scarcity and potential as a resource inflation hedge.
“We believe that the unique attributes of Bitcoin discussed above not only differentiate it from fiat money, but also from other cryptocurrency assets, and for this reason, we have no plans to purchase cryptocurrency assets other than Bitcoin,” the company said. declared.
Furthermore, crypto-focused companies are also showing optimism. Bybit, a global cryptocurrency exchange, would reportedly allow Chinese expats to open accounts and trade.
This move aims to meet the growing demand for secure and easy-to-use crypto trading solutions among the Chinese diaspora and Chinese communities around the world. The development happened later relationships on Wednesday, suggesting that Bybit may have eased registration and verification processes for users located in China, despite the country’s well-known ban on Bitcoin.
To know more: How to buy Bitcoin (BTC) and everything you need to know
These activities are part of a larger pattern in which major financial organizations and crypto companies position yourself strategically to exploit the potential of Bitcoin. This is a strong indication of the growing optimism regarding the future of this cryptocurrency.
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