Bitcoin’s price reached a record on Sunday. Stripe CEO, John S. Stripe, said stablecoins are forcing banks to pay real interest to their users on deposit. US-listed Bitcoin spot exchange-traded fund (ETFs), which were listed in October, 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.
BitcoinBTCSet a new timer 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.
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 claims stablecoins would force banks into offering users competitive interest rates on deposits
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.”
According to 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
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 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 expectations for another US interest-rate cut. This has led to a positive sentiment in 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,” Added he, “near key technical support levels”.
In October, the average return on Bitcoin is second best in history. This month, also known as “October”, has been the most profitable 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
