Bitcoin rallied on Sunday to reach a record-breaking high. 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’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 surpassed $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.
In the past similar circumstances have 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 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.”
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.
US-listed Bitcoin ETFs have begun the historically bullish October month with their second-best week of inflows since launchInvestors are regaining their confidence.
Spot BitcoinBTCETFs reported cumulative net worth 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.
The outflows from the prior week, which totalled $902,000,000, have been significantly reduced. Analysts said that the turn around was due to analysts’ growing expectation of another US interest-rate cut. This has led investors to be more positive about risky assets.
Expectations of another US rate cut have triggered an increase in the price of 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 key technical support levels are close.
The continued inflows of ETFs could provide significant tailwinds to 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 The data show.
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Source: cointelegraph.com
