Bitcoin rose to as high as $70,000 on June 3, signaling a bullish outlook for the flagship crypto. This price surge is believed to be due to some recent developments that are positive for the Bitcoin ecosystem.
Interest Rate Cuts Could Come In September
Data from The CME FedWatch Tool shows that the probability of the Fed cutting interest rates to a 25-basis point has increased to 51.3%. Meanwhile, the probability of interest rates remaining at 50-basis point is at 40.1%. This heightened expectations about an interest rate cut has come despite recent inflation giving mixed feelings about the US economy.
The US S&P Global Manufacturing PMI, rose to 51.3 in May from 50.0 in April, indicating a most improvement. However, the ISM Manufacturing PMI fell from 49.2 to 48.7. Investors are still confident that interest rates will be cut by September. An interest rate cut is positive for Bitcoin and the broader crypto market as it will boost investors’ confidence to invest in these risk assets.
Meanwhile, another positive development for Bitcoin is the fact that the Spot Bitcoin ETFs are again recording impressive net inflows. These funds recorded a weekly total net inflows of $170.9 million last week. These Spot Bitcoin ETFs have also began this new week on the right foot, recording $105.1 in net inflows on June 3.
This development is significant, considering that these funds were instrumental in sending Bitcoin to a new all-time high (ATH) back in March. As such, they could once again serve as the catalyst as the flagship crypto looks to successfully break out from the $70,000 range and rise above its current ATH of $73,750.
Moreover, the increased demand for these funds is coming at a time when the Spot Ethereum ETFs are about to begin trading. These developments paint an ultra-bullish picture for not just Bitcoin but the entire crypto market.
Bitcoin Still Far From The Market Top
Crypto analyst Crypto Con noted in a recent X (formerly Twitter) post that Bitcoin is still far from its market top. He made this remark while alluding to the Logarithmic Market Value to Realized Value, which showed that “there is still good room for growth to the cycle top mark.” The crypto analyst however added that this cycle may be way progressed than “it would appear on the surface.”
Crypto analyst Tarekonchain also shared a similar sentiment, stating that Bitcoin has yet to reach its fair market value with its MVRV around 2.3. He further revealed that Bitcoin’s 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 over.
Featured image created with Dall.E, chart from Tradingview.com
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