Bitcoin rose to a record-breaking high on 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 (ETFs), which have been listed since October 1, saw billions of dollars in new inflows.
Bitcoin surge to $125,000 fuelled by US Government Shutdown, 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 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 is the chief investment officer of digital asset bank Sygnum Bank.
US Government Shutdown has “renewed discussion around Bitcoin’s store-of-value role, as political dysfunction underscores interest in decentralised assets,” Dori tells 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 would force banks into adopting them. offer competitive interest rates Stablecoins that offer a yield are increasingly popular with customers.
Collison pointed to the average rates of savings offered by banks in Europe and America, all well below 1%. Stablecoins are ripe for disrupting this market. 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.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
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 worth 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.
This is a dramatic improvement from last week’s outflow of $902,000,000. Analysts said that the turn around was due to a growing expectation of another US interest-rate cut which improved sentiment for risk assets.
Expectations of a further US rate cut have triggered an increase in the price of a “shift in sentiment,” Investors are re-demanding 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,” Added he, “near key technical support levels”.
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” Crypto investors are a growing group.
Bitcoin briefly rose above the $123,996 mark on Friday after this week’s $3.2 Billion, the highest price since Aug. 14, for the first cryptocurrency in history. TradingView The data show.
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Source: cointelegraph.com
