Bitcoin (BTC) Price Retakes $70,000 On Central Bank Easing Hopes, Potential Easing GBTC Sell Pressure – New ATHs Next?
The Bitcoin (BTC) price pushed back above $70,000 on Monday for the first time in 9 days as traders focused on the theme of global central bank easing, a possible easing on GBTC sell pressure and BlackRock’s first major entry into the realm of asset tokenization.
Last changing hands just under $70,000, the Bitcoin price is up 6% in 24 hours and back above its 2021 peaks.
Two US Federal Reserve policymakers were on the wires talking about rate cuts on Monday.
That comes a week after the Fed, ECB and BoE all teed up rate cuts later in 2024 at meetings last week, despite sticky inflation pressures in some economies. The Swiss National Bank also delivered a surprise rate cut last week.
As per CoinShares’ weekly fund flows blog, US spot Bitcoin ETFs saw big net outflows last week.
This was driven by a whopping $2 billion in funds exiting Grayscale’s Bitcoin Trust (GBTC). This was only partially offset by a $1.1 billion inflow into the other newly launched US spot Bitcoin ETFs.
GBTC liquidation by bankrupt estates such as Genesis have been cited as driving much of the outflows.
If bankruptcy-related GBTC selling is set to slow, that could remove a key short-term headwind to the market.
Elsewhere, BlackRock last week launched its first tokenized fund on Ethereum. The fund, called the BlackRock Institutional Digital Liquidity Fund (BUIDL), is fully collateralized by cash, T-bills and repurchase agreements.
Some analysts implied BlackRock’s latest steps to legitimize and promote crypto adoption could also be supporting market sentiment on Monday.
As the Bitcoin price probes $70,000, bulls are asking whether it could soon retake all-time highs.
Bitcoin snapped a short-term downward trend line on Sunday that had been in play since the market
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