According to Odaily Planet Daily, Bitcoin has risen by 7% in the past five days, breaking through $64,000 for the first time since August 26. Meanwhile, gold has hit a record high more than 30 times this year, breaking through $2,600 per ounce.
Analyst James Van Straten said the outperformance of Bitcoin and gold is related to increased global liquidity, the expansion of global central bank balance sheets, and the recent rate cuts by the Federal Reserve. The Federal Reserve's balance sheet is currently $7.1 trillion, and although quantitative tightening is still ongoing, the pace has slowed.
The reduction in reverse repo balances, now just over $300 billion, has freed up liquidity back into the financial system, increasing the availability of funds for lending, investment, and overall economic activity. This increase in liquidity is particularly stimulative for Bitcoin, as Bitcoin tends to move in tandem with liquidity trends. The Fed’s 50 basis point rate cut further supported the gains for both Bitcoin and gold.
