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21 May 2024
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Bitcoin Price Surge to $66,000: Why BTC is Up Today?



In the last 24-hours, Bitcoin (BTC) price has soared to $66,000, achieving a remarkable 7% increase in just 24 hours. This rise in value is influenced by various macroeconomic factors, including the latest US inflation data.

Bitcoin Price Rise as US Core Inflation Falls

The US Consumer Price Index (CPI) data released recently showed a decrease in core inflation to a 3-year low of 3.4%. This drop has sparked increased activity in the Bitcoin market, with significant interest from major global banks. The correlation between lower inflation and increased investment in digital assets suggests investors might be looking at Bitcoin as a hedge against economic instability.

The favorable inflation figures also signal potential upcoming cuts in US interest rates. While the Federal Reserve has adopted a cautious “wait-and-see” approach, the latest data might accelerate their timeline. However, concerns remain about the speed at which inflation is decreasing, which could limit the scope of rate cuts within this year.

Also Read: Coinbase Has Unusually Big Plans For $600B Australian Pension Funds

Major Banks Boost BTC with ETF Investments

The surge in Bitcoin’s price is also propelled by growing institutional interest, particularly in Bitcoin ETFs. Recent SEC filings reveal that top banks like JPMorgan and Wells Fargo, along with international banks such as UBS and Bank of Montreal, have disclosed significant investments in Bitcoin ETFs. These disclosures have played a pivotal role in boosting Bitcoin’s market value.

Further fueling the market’s momentum are investments from entities like the State of Wisconsin Investment Board, which recently invested $99 million in BlackRock’s Spot Bitcoin ETF. This influx of institutional capital not only validates Bitcoin’s investment appeal but also enhances its legitimacy and stability as an asset class.

The ETF market continues to buzz with anticipation as more institutions are expected to enter. The recent appointment of Salim Ramji, former head of global ETFs at BlackRock, as CEO of Vanguard, is particularly noteworthy. Vanguard, which had previously banned spot Bitcoin ETFs, might reconsider its stance under Ramji’s leadership, potentially leading to more institutional involvement.

This shift would likely sustain Bitcoin’s upward trend as more institutional investors begin to include It in their portfolios. The ongoing development in the ETF sector, combined with macroeconomic factors, provides a robust framework for understanding Bitcoin’s recent and continued rise in value.

Also Read: Whales Buy 720 Billion Pepe Coin As PEPE Price Rally Over 100%

 

The post Bitcoin Price Surge to $66,000: Why BTC is Up Today? appeared first on CoinGape.

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