Bitcoin has reached new heights on Sunday. Stripe’s CEO claims that the use of stablecoins by banks will make them offer real interest rates on users’ deposits. US-listed Bitcoin spot exchange-traded fund (ETF) started October off with billions.
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 weekendAnalysts have called for an accumulation phase to fuel the rally up to $150,000 by the end of this year.
BitcoinBTC() create a new all-time high above $125,700The market cap briefly crossed $2.5 trillion, a milestone that had never been reached before 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 circumstances have in the past led to “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, CEO of Stripe, said that the 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 a perfect solution for this. 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
The US-listed Bitcoin ETFs started the traditionally bullish month October with their second-best week of inflows since launchInvestors have a renewed optimism.
Spot BitcoinBTCETFs reported cumulative net worth of $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 data.
This is a dramatic improvement from last week’s outflows of $902 millions. Analysts attribute the change to growing expectation of another US rate cut which improved sentiment towards risk assets.
The growing expectation of another US interest-rate cut has triggered 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,” He added that the key levels of technical support are near.
In October, the average return on Bitcoin is second best in history. “Uptober” Crypto investors are a growing group.
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
