Bitrabo Editorial
Bitcoin reached a peak of $70,000 on June 3, showing a positive trend for the primary cryptocurrency due to recent favorable developments in its ecosystem.
Potential Interest Rate Cuts in September
The likelihood of a 25-basis point interest rate cut by the Fed has risen to 51.3%, as per data from The CME FedWatch Tool. Despite mixed signals from recent inflation data about the US economy, investors anticipate a possible rate cut, which could have a positive impact on Bitcoin and the broader crypto market by bolstering investor confidence.
Another optimistic aspect for Bitcoin is the increasing net inflows seen by Spot Bitcoin ETFs. With $170.9 million in net inflows last week and a further $105.1 recorded on June 3, these funds played a vital role in propelling Bitcoin to its previous all-time high in March and could be a driving force for Bitcoin to break past the $70,000 level and surpass its all-time high of $73,750.
Furthermore, the rising demand for these funds coincides with the imminent trading of Spot Ethereum ETFs, painting a highly bullish outlook not just for Bitcoin but for the entire crypto market.
Bitcoin’s Market Position
Bitcoin is still a considerable distance from its market peak, as highlighted by crypto analysts referencing the Logarithmic Market Value to Realized Value metric. Despite indications of a well-progressed cycle, there seems to be room for growth towards the cycle’s peak.
Another crypto analyst noted that Bitcoin has not yet reached its fair market value, as its MVRV is around 2.3, historically peaking at values of 3.5 or above in previous cycles. This suggests that the current bull run still has more room to expand.