đđWhy Bitcoin and Gold Rise: Analysts Share All the Reasons! đđ
In recent days, increasing global liquidity, central bank balance sheet expansion, and FED interest rate cuts have increased the value of Bitcoin and gold. Bitcoin has increased by 7% in the last five days, exceeding $64,000 for the first time since August. Gold, on the other hand, reached a new peak this year, reaching $2,600 per ounce.
He emphasized that for the first time since Bitcoin's founding in 2009, both Bitcoin and gold were among the best-performing assets of the year. Analyst James Van Straten attributes this impressive performance to the expansion of global central bank balance sheets and the FED's decision to cut interest rates by 50 basis points to stimulate investments. The FED's current balance sheet has reached $7.1 trillion, and although quantitative tightening continues, its pace has slowed. The reduction in reverse repo balances by over $300 billion has provided liquidity to the financial system, spurring lending, investment and economic growth. Globally, the total balance sheet of the 15 largest central banks, including the US, European Union, Japan and China, has reached approximately $31 trillion. This increase, which has continued since July, is a positive development for cryptocurrencies that are dependent on liquidity trends, such as Bitcoin.
The Fedâs rate cuts have further strengthened the value of Bitcoin and gold, as low interest rates have led to an increase in the tendency to invest in risky and alternative assets. According to analysts, increased liquidity and stimulus measures are helping both assets reach new heights, strengthening their roles as the best performing assets in the current economic environment.
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