BitcoiinAnalysis
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Bitcoin Surges Above $70K: Stability and Positive Macroeconomic Trends Fueling Growth
#Bitcoin #BitcoiinAnalysis #bitcoin☀️ $BTC
Bitcoin (BTC) has surged past $70,000, nearing its March record highs. Unlike previous rallies, this breakout is marked by stability and favorable macroeconomic conditions.
Here’s what’s driving the trend:
Less Speculative Activity
This rally lacks the speculative frenzy seen in past surges. Data from CoinMarketCap and Velo Data show lower perpetual futures leverage and moderate funding rates, suggesting a more sustainable rise. The annualized three-month futures basis for bitcoin on major exchanges is between 10% and 13%, down from over 25% in March. Greg Magadini, Director of Derivatives at Amberdata, notes the stability and lower speculative activity compared to earlier this year.
Positive Macroeconomic Environment
The macroeconomic backdrop is more supportive of risk assets. Major banks like JPMorgan and Citigroup expect the U.S. Federal Reserve to cut rates soon, signaling renewed liquidity easing. The European Central Bank and the Bank of Canada have already initiated cuts. Additionally, a 13% drop in oil prices to $75.50 per barrel suggests disinflation, reducing government bond yields and encouraging risk-taking. Lower oil prices typically lower inflation expectations and yields, potentially boosting bitcoin.
Conclusion
Bitcoin’s rise above $70,000 is driven by reduced speculative activity and supportive macroeconomic conditions, paving the way for a potentially sustained rally.
Bitcoin Surges Above $70K: Stability and Positive Macroeconomic Trends Fueling Growth
#Bitcoin #BitcoiinAnalysis #bitcoin☀️ $BTC
Bitcoin (BTC) has surged past $70,000, nearing its March record highs. Unlike previous rallies, this breakout is marked by stability and favorable macroeconomic conditions.
Here’s what’s driving the trend:
Less Speculative Activity
This rally lacks the speculative frenzy seen in past surges. Data from CoinMarketCap and Velo Data show lower perpetual futures leverage and moderate funding rates, suggesting a more sustainable rise. The annualized three-month futures basis for bitcoin on major exchanges is between 10% and 13%, down from over 25% in March. Greg Magadini, Director of Derivatives at Amberdata, notes the stability and lower speculative activity compared to earlier this year.
Positive Macroeconomic Environment
The macroeconomic backdrop is more supportive of risk assets. Major banks like JPMorgan and Citigroup expect the U.S. Federal Reserve to cut rates soon, signaling renewed liquidity easing. The European Central Bank and the Bank of Canada have already initiated cuts. Additionally, a 13% drop in oil prices to $75.50 per barrel suggests disinflation, reducing government bond yields and encouraging risk-taking. Lower oil prices typically lower inflation expectations and yields, potentially boosting bitcoin.
Conclusion
Bitcoin’s rise above $70,000 is driven by reduced speculative activity and supportive macroeconomic conditions, paving the way for a potentially sustained rally.
