Bitcoin rose to Up to $70,000 on June 3, indicating a bullish outlook for the major cryptocurrency. It is believed that this rise in prices is due to some recent developments that are considered positive for the economy Bitcoin ecosystem.
Interest rates may be cut in September
Data From the CME FedWatch tool shows that the probability Federal Reserve Bank to cut interest rates to 25 basis points and rose to 51.3%. Meanwhile, the probability of interest rates remaining at 50 basis points is 40.1%. These rising expectations for a rate cut came despite recent inflation giving mixed feelings about the US economy.
The US S&P global manufacturing PMI rose to 51.3 in May from 50.0 in April, indicating the most improvement. However, the ISM Manufacturing PMI fell from 49.2 to 48.7. Investors remain confident that interest rates will be cut by September. that Reducing the interest rate It is a positive thing for Bitcoin and the broader cryptocurrency market as it will boost investor confidence in investing in these risky assets.
Meanwhile, another positive development for Bitcoin is the fact that Bitcoin ETFs Impressive net flows are again recorded. These funds were registered A Total weekly net flows $170.9 million last week. Spot Bitcoin ETFs also started this new week well, recording net inflows of $105.1 on June 3.
This development is important, since these funds were instrumental in sending Bitcoin to New all-time high (ATH) Back in March. As such, they could serve as a catalyst once again as major cryptocurrencies look to successfully exit from $70,000 range It rises above the current ATH price of $73,750.
Moreover, the increasing demand for these funds comes at a time when Spot Ethereum ETFs are about to start trading. These developments paint a very bullish picture not only for Bitcoin but for the entire cryptocurrency market.
Bitcoin is still far from the top of the market
Crypto Con Analyst It was noted in a recent post by X (formerly Twitter) that Bitcoin is still far from its market highs. He made this observation while pointing to the logarithmic Market value to realized value, Which showed that “there is still good room for growth to the top of the cycle.” However, the cryptocurrency analyst added that this cycle may be much further ahead than “it appears on the surface.”
Cryptocurrency analyst Tarekonchain also shared similar sentiments, It is useful Bitcoin has not yet reached its fair market value as the MVRV is around 2.3. It was also revealed that the price of Bitcoin peaked in previous sessions when the MVRV index reached a value of 3.5 or higher, meaning that The bull ran Still far from finished.
Featured image created with Dall.E, chart from Tradingview.com