Bitcoin climbed to a record-breaking high this Sunday. Stripe’s CEO said stablecoins are forcing banks to pay real interest to their users on deposit. And US-listed Bitcoin spot exchange-traded fund (ETF) started October off with billions of dollars in new inflows.
Bitcoin’s rally from $125,000 to $125,000 is fueled by US government shutdown and macro-factors: analysts
Bitcoin breached a new all-time high over the weekend. This has prompted analysts to suggest a new accumulation phase, which could drive the market to reach $150,000 before year’s end.
BitcoinBTC() create a new all-time high above $125,700Its market capitalization briefly surpassed the milestone of $2.5 trillion for the first. in crypto historyCointelegraph published an earlier report on Sunday.
The rally was supported by multiple macroeconomic factors, including the recent US government shutdown — the first since 2018 — which some analysts say has renewed interest in Bitcoin’s store-of-value role.
Similar conditions in the past have caused similar outcomes. “major price milestones,” Fabian Dori chief investment officers at the digital asset banking group Sygnum Bank.
US Government Shutdown has “renewed discussion around Bitcoin’s store-of-value role, as political dysfunction underscores interest in decentralised assets,” Dori spoke to Cointelegraph. “At the same time, the broader environment — characterised by loose liquidity conditions, a service-led acceleration in the business cycle, and narrowing underperformance relative to equities and gold — has drawn attention to digital assets,” He also added.
Stripe CEO: Stablecoins force banks to compete on interest rates for users
Patrick Collison of Stripe said stablecoins are forcing banks to adopt them. offer competitive interest rates Stablecoins that offer a yield are increasingly popular with customers.
Collison said that stablecoins could disrupt the market by reducing average interest rates for deposits made by customers in Europe and the United States, which are all below 1%. He wrote:
“Depositors are going to, and should, earn something closer to a market return on their capital. Some lobbies are currently pushing post-GENIUS to further restrict any kinds of rewards associated with stablecoin deposits. The business imperative here is clear — cheap deposits are great, but being so consumer-hostile feels to me like a losing position.”
According to data from RWA.XYZAs the industry continued to thrive following the passage of a comprehensive US regulatory law,
Bitcoin ETFs kickstart “Uptober” With $3.2 billion, this is the second best week ever.
The US-listed Bitcoin ETFs started the traditionally bullish month October with their second-best week of inflows since launchInvestors are regaining their confidence.
Spot BitcoinBTCThe cumulative net value of ETFs was $3.24 Billion. positive inflows Over the last week, the amount of money spent by Americans on the average was almost equal to the $3.38 trillion that they had in the week ending November 22, 2024. according SoSoValue provides data.
The outflows of $902 millions the week before have been surpassed by this figure. Analysts said that the turn around was due to the growing expectation of a further US interest rate reduction, which improved sentiment for risk assets.
The growing expectation of an interest rate reduction by the US triggered a “shift in sentiment,” Attracting renewed investor interest in Bitcoin ETFs “bringing four-week inflows to nearly $4 billion,” Iliya Kalchev is a dispatch analyst for digital asset platform Nexo. “At current run-rates, Q4 flows could retire over 100,000 BTC from circulation — more than double new issuance.”
“ETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,” He said that the technical assistance levels are at or near critical ones.
In October, the average return on Bitcoin is second best in history. This month, also known as “October”, has been defined by many people to be one of the most profitable months for Bitcoin. “Uptober” By crypto investors
The $3.2 billion in Bitcoin transactions this week briefly lifted the price of Bitcoin to $123,996 at one point on Friday. This was a six-week old high, last seen back on August 14. TradingView The data show.
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Source: cointelegraph.com
