Bitcoin went to up to $70,000 on June 3, signaling a bullish outlook for the flagship crypto. This price surge is believed to be due to some recent positive developments for the Bitcoin ecosystem.
Interest rate cuts could happen in September
Data of the CME FedWatch tool shows that the probability of the Fed Cut interest rate at 25 basis points rose to 51.3%. At the same time, the probability that interest rates will remain at 50 basis points is 40.1%. These heightened expectations for lower interest rates have occurred despite recent inflation giving rise to mixed feelings about the U.S. economy.
The US S&P Global Manufacturing PMI rose from 50.0 in April to 51.3 in May, indicating considerable improvement. However, the ISM manufacturing PMI rose from 49.2 to 48.7. Investors remain confident that interest rates will be reduced by September. A drop in interest rates is positive for Bitcoin and the broader crypto market, as it will increase investor confidence to invest in these risky assets.
At the same time, another positive development for Bitcoin is the fact that the Spotting Bitcoin ETFs once again record impressive net inflows. These funds recorded a weekly total net inflows of $170.9 million last week. These Spot Bitcoin ETFs also started this new week off on the right foot, recording $105.1 in net inflows on June 3.
This development is significant, given that these funds were instrumental in sending Bitcoin to a new absolute record (ATH) in March. As such, they could once again serve as a catalyst as the flagship crypto seeks to successfully break out of the $70,000 range and surpass its current ATH of $73,750.
Additionally, the increased demand for these funds comes at a time when Spot Ethereum ETFs are about to begin trading. These developments paint an ultra optimistic picture not only for Bitcoin but for the entire crypto market.
Bitcoin still far from market top
Crypto Analyst Crypto Con noted in a recent article by X (formerly Twitter) that Bitcoin is still far from its market peak. He made this remark while referring to the logarithmic Market value to realized value, which showed that “there is still good room for growth to reach the peak of the cycle”. The crypto analyst, however, added that this cycle could be much further along than “it appears at first glance.”
Crypto analyst Tarekonchain also shared a similar sentiment: declaring that Bitcoin has not yet reached its fair market value with its MVRV around 2.3. He further revealed that Bitcoin price peaked in previous cycles when the MVRV indicator reached a value of 3.5 or above, meaning that the bull run is still far from finished.
Featured image created with Dall.E, chart from Tradingview.com
