BlockBeats news, September 20, according to CoinDesk, in the past five days, Bitcoin has risen by 7%, breaking through $64,000 for the first time since August 26. At the same time, gold has set a record high more than 30 times this year, breaking through $2,600 per ounce. Charlie Bilello, chief market strategist at Creative Planning, an investment management and financial planning company, said this is the first time since Bitcoin came into being in 2009 that Bitcoin and gold have both become the best performing assets of the year.
Analyst James Van Straten said that the outstanding performance of Bitcoin and gold is related to the increase in global liquidity, the expansion of global central bank balance sheets, and the recent interest rate cuts by the Federal Reserve to stimulate investment and economic activity. The Federal Reserve's current balance sheet is $7.1 trillion, and although quantitative tightening is still ongoing, the pace has slowed. The reduction in the reverse repurchase balance, which is currently just over $300 billion, has released liquidity back to the financial system. This has a stimulating effect, increasing the availability of funds for lending, investment and overall economic activity.
From a broader perspective, the combined balance sheet of the world's 15 largest central banks (including the United States, the European Union, Japan, and China) is close to $31 trillion. While the number itself is not the point, the trend shows a global recovery in central bank balance sheets since July, rising from around $30 trillion. This increase in liquidity is particularly stimulating for Bitcoin, as Bitcoin tends to move in line with liquidity trends. In addition to this, the Fed's 50 basis point rate cut further supported the rise of Bitcoin and gold.
