Bitcoin Surges 7%, Hitting $64,000 as Global Liquidity Boosts Best-Performing Assets

COINOTAG news, September 20, according to CoinDesk, Bitcoin has surged by 7% in the past five days, surpassing $64,000 for the first time since August 26. Concurrently, gold has achieved a record peak over 30 times this year, reaching $2,600 per ounce. This marks the first instance since Bitcoin’s inception in 2009 that both Bitcoin and gold have emerged as the top-performing assets of the year, according to Charlie Bilello, chief market strategist at Creative Planning, a financial planning company. Analyst James Van Straten attributes the impressive performance of Bitcoin and gold to increased global liquidity, the expansion of central bank balance sheets worldwide, and recent interest rate cuts by the Federal Reserve aimed at spurring investment and economic activity. The Fed’s balance sheet stands at $7.1 trillion, and despite ongoing quantitative tightening, the pace has decelerated. The reduction in the reverse repurchase balance, now slightly over $300 billion, has reintroduced liquidity into the financial system. This acts as a stimulus, enhancing the availability of funds for lending, investment, and overall economic activity. On a global scale, the combined balance sheet of the world’s 15 largest central banks, including entities from the United States, the European Union, Japan, and China, is nearing $31 trillion, up from around $30 trillion since July, signaling a global recovery. Increased liquidity is particularly favorable for Bitcoin, which tends to correlate with liquidity trends. Additionally, the Fed’s recent 50 basis point rate cut has further bolstered the ascent of both Bitcoin and gold.