Bitcoin reached a new record high in the crypto world today. The CEO of Stripe said that stablecoins would force banks to give users real interest rates on their deposits. US listed spot Bitcoin ETFs (exchange-traded funds) have kicked off this month with millions in 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 weekendAs a result, analysts are calling for a new accumulation phase which could drive the market to reach $150,000 by year’s end.
BitcoinBTCSet a new timer all-time high above $125,700The market cap briefly crossed $2.5 trillion, a milestone that had never been reached before in crypto historyCointelegraph earlier reported 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 is the chief investment officer of digital asset bank Sygnum Bank.
US shutdown of government 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 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.”
Data from RWA.XYZThe sector has continued to expand in response to a new comprehensive regulation bill that was signed into law by the United States.
Bitcoin ETFs kickstart “Uptober” Second-best ever week for revenue with $3.2 Billion
US-listed Bitcoin ETFs have begun the historically bullish October month with their second-best week of inflows since launchSignaling renewed investor confidence.
Spot BitcoinBTCETFs have recorded cumulative net assets of $3.24 Billion. positive inflows The week ended November 22, 2024. This week’s total is almost the same as the record set by the previous week of $3.38 Billion. according SoSoValue provides data.
This is a dramatic improvement from last week’s outflows of $902 millions. Analysts said that the turn around was due to the growing expectation that another US interest rates cut will occur, which in turn has boosted sentiment for risky assets.
The growing expectation of another US interest-rate cut has triggered a “shift in sentiment,” Attracting renewed investor interest in Bitcoin ETFs “bringing four-week inflows to nearly $4 billion,” Iliya Kalchev told Cointelegraph that he is the dispatch analyst of 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 added that the key levels of technical support are near.
The continued inflows of ETFs could provide a significant boost for Bitcoin, as October is often called the “second-best” month in terms average historical returns 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 Data shows
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Source: cointelegraph.com
