Bitcoin Hits $71,000 Milestone: Will BTC Price Reach a New All-Time High of $75,000 This Month?

  • Bitcoin surges beyond $71,000, marking its fifth consecutive day of gains, amid expectations of potential Federal Reserve interest rate cuts.
  • Fidelity’s Bitcoin ETF witnesses remarkable growth, accumulating nearly $600 million in inflows within two days.

Bitcoin, the largest cryptocurrency by market capitalization, surged beyond the $71,000 threshold, marking its fifth consecutive day of gains. This upward trend reflects growing optimism across global markets, driven by expectations of potential Federal Reserve interest rate cuts later this year.

With the current streak of daily gains being the longest in three months, Bitcoin, at the time of this writing, had risen by 3.36% in the past 24 hours to reach $70,951, approaching just 3.73% below its all-time high of $73,750 set in mid-March.

The sustained upward trajectory aligns with market sentiment, with traders increasingly speculating on a Federal Reserve rate reduction as early as November. This speculation follows indicators of easing U.S. inflation and a moderating job market.

The US CPI numbers for the month of May 2024 will release the next week on June 12 which could be a deal breaker in deciding the further course of action by the Fed. With inflation numbers cooling down, the Bank of Canada has already pivoted to quantitative easing reducing interest rates by 25 basis points earlier this week.

Bitcoin ETFs See Strong Inflows

Bitcoin whale activity and ETF inflows have once again picked up pace after a somber month of May. The Bitcoin ETFs have witnessed seven consecutive days of inflows. Just within the last two days, the total inflows in the spot Bitcoin ETFs have grossed more than $1.3 billion.

Fidelity’s Bitcoin ETF, known as FBTC, has seen impressive growth, amassing nearly $600 million in inflows within just two days. This surge has increased its total assets under management to over $9.5 billion, placing Fidelity ahead of BlackRock in the competitive spot Bitcoin ETF market, reported Crypto News Flash.

On the other hand, the Bitcoin derivatives data has also seen strong improvement. Bitcoin’s open interest (OI) surged over $2 billion in just three days, leading traders to speculate it may trigger a sudden “whipsaw” effect on its price.

“Bitcoin has seen quite the run-up in open interest over the past three days,” noted pseudonymous crypto trader Daan Crypto Trades in a June 5 X post. Open interest refers to the total number of unsettled derivative contracts, such as options or futures, with a rise potentially indicating increased speculation on the asset.

Bitcoin Price To Hit $100,000 Before US Elections

In anticipation of the upcoming U.S. election, Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered Bank, has made bullish predictions regarding Bitcoin’s price. Kendrick forecasts that if Trump wins, Bitcoin could reach $100,000 and potentially hit $150,000 by the end of the year.

This statement was shared on Thursday via email correspondence with The Block. Kendrick also noted that while the Biden administration has shown pragmatism by approving spot ether ETFs, recent actions, such as vetoing efforts to repeal SAB 121, suggest that Trump may be more favorable towards Bitcoin than Biden.

The analyst from Standard Chartered highlighted the significance of tomorrow’s Non-Farm Payrolls data, suggesting that if the data proves to be favorable, Bitcoin’s price could reach a new all-time high over the weekend. He expressed optimism that this could pave the way for Bitcoin to reach $80,000 by the end of June.

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