- Bitcoin (BTC) has surged past the $65,000 mark, holding steady at $65,580 with a 3% gain, driven by factors such as loose monetary policies, China’s economic stimulus, and increased on-chain activities.
- Experts are now suggesting the possibility of a rally in the fourth quarter, targeting $70,000 in the short term.
- Ethereum (ETH) has also seen a 1.5% increase, trading at $2,665 according to CoinGecko data.
Discover the latest trends in the cryptocurrency market as Bitcoin and Ethereum surge, influenced by global monetary policies, economic stimuli, and market activities.
Bitcoin Breaks $65,000 Amidst Loose Monetary Policies
Bitcoin’s remarkable surge to $65,580 is attributed to several pivotal factors, including relaxed monetary policies and China’s recent economic initiatives. Analysts highlight that this surge is likely due to recent interest rate cuts in the U.S. and China. Notably, the head of operations at Flipster, Ian Lee, identified the 50 basis point rate cut in the U.S. and the Chinese central bank’s similar action as key drivers behind Bitcoin’s current momentum.
Potential Q4 Rally: Targeting $70,000
Market sentiment is bullish, with analysts forecasting a potential rally in the fourth quarter. Short-term positions target Bitcoin hitting $70,000, driven largely by recent news surrounding the U.S. presidential elections. Ian Lee pointed out that the market is currently pricing in another 50 to 25 basis point rate cut in the November FOMC meeting, fundamentally impacting Bitcoin’s trajectory.
Ethereum Following Bitcoin’s Lead
Ethereum (ETH), the second-largest cryptocurrency, has also experienced gains, currently trading at $2,665, up by 1.5%. This upward movement is part of a broader market trend influenced by on-chain activity and overall economic conditions. The recent liquidity injections from China and robust ETF inflows have substantially impacted Ethereum positively.
Market Liquidations and On-chain Activities
Data from CoinGlass shows that in the past 24 hours, approximately $154 million worth of positions have been liquidated. Short positions accounted for $104.2 million in losses while longs lost about $49.8 million. This trend signifies a bullish market sentiment, especially since Bitcoin has maintained its stability above the $65,000 mark. Increased on-chain activities, particularly on the Ethereum network, have also been noted, hinting at preparations for a possible DeFi TVL rebound.
Global Stimulus and Its Impact on Crypto
The recent $278 billion stimulus plan announced by China could significantly affect the cryptocurrency market. Marcus Thielen from 10x Research underscores the historical impact of Chinese capital inflows into Bitcoin, which in the past have led to substantial market rallies. Given the synchronized rate cuts by the U.S. Federal Reserve and the People’s Bank of China, an inflow of funds into the crypto market seems likely, with Bitcoin expected to hit the optimistic short-term target of $70,000 within the next two weeks.
Decreasing Volatility and Institutional Interest
This influx of liquidity has coincided with Bitcoin’s 30-day realized volatility dropping to 41%, making it more appealing to institutional traders who can now maintain larger positions while adhering to risk management protocols. Thielen noted that the likelihood of a rally in Q4 is extraordinarily high, as the crossing of the $65,000 threshold could trigger a significant market FOMO (fear of missing out).
Factors Driving BTC Growth: Insights from Analysts
Ilya Orkin, Chief Analyst at CEX.IO, attributed Bitcoin’s rise above $65,000 to multiple factors, including Chinese liquidity injections, ETF inflows, and strong U.S. GDP data. Orkin identified a key price range of $66,600 to $67,300, which Bitcoin must breach to pave the way for touching its all-time highs of $70,000.
Conclusion
In summary, Bitcoin’s recent breach of the $65,000 mark, driven by global monetary easing and substantial economic stimuli, signals a robust market sentiment poised for further gains. Coupled with Ethereum’s ascent and significant market liquidations, the broader cryptocurrency market is set for a dynamic fourth quarter. Key factors such as the upcoming FOMC meeting, ongoing Chinese economic measures, and reduced volatility will play crucial roles in shaping Bitcoin and Ethereum’s trajectories, with the market eyeing a bullish outlook heading towards $70,000.
