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 surge to $125,000 fuelled by US Gov’t Shutdown, Macro factors: Analysts
Bitcoin breached a new all-time high over the weekendAnalysts are calling for a new accumulation phase, which could drive the market to reach $150,000 before year’s end.
BitcoinBTCSet a new timer all-time high above $125,700The market cap briefly exceeded the $2.5 billion milestone. 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 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 claims stablecoins would force banks into offering users competitive interest rates on deposits
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 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.XYZAs the industry continued to thrive following the passage of a comprehensive US regulatory law,
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.
The outflows from the prior week, which totalled $902,000,000, have been significantly reduced. Analysts attribute the change to a growing expectation of a further US interest rate reduction, which improved sentiment towards risk 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 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” 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
