On June 5, Bitcoin enthusiasts had a major reason to celebrate as the cryptocurrency soared past $71,000, a significant rally that paints the cryptocurrency market in vibrant colors of optimism. This noticeable increase is not only related to numbers, but is a strong indication of increasing investor confidence and the possibility of market stability. Why did Bitcoin rise?
The main factor was the expectation of US interest rate cuts, driven by recent weak economic indicators. Low interest rates tend to reduce the yield on US government bonds, making riskier investments like cryptocurrencies more attractive. On the same day, Bitcoin reached $70,917.7 and showed no signs of slowing down. Altcoins followed suit, with Ethereum, Solana, and others posting impressive gains. Binance's BNB even reached a new all-time high of $709. This collective rally contributed to a growth in the total cryptocurrency market cap of 1.63%, despite a slight decline in market size.