Over the last 24 hours, Bitcoin (BTC) has increased nearly 5% as it broke through the pivotal $65,000 mark, according to CoinMarketCap. Moreover, with a host of macroeconomic factors coming into play, the reason for its recent surge is multi-layered. Indeed, the leading cryptocurrency is benefiting from a perfect storm of data and speculation.
The surge arrives alongside the release of US inflation figures. Specifically, CPI shows core inflation in the United States has reached a 3-year low, falling to 3.4%. Subsequently, the Bitcoin investment market has seen increased participation from some of the biggest banks in the world.
Also Read: Coinbase Sees $500 Million Bitcoin Exodus, What’s Behind It?
BTC Hits $65,000 as Inflation Falls
The digital asset market has long been led by Bitcoin, and it continues to depend on its performance. Since the highly anticipated Bitcoin halving event took place in April, the market has noted a slight downturn compared to the start of the year. However, that looks to be turning around with the asset’s recent surge.
Indeed, Bitcoin (BTC) has reached the $65,000 level, with the asset rallying over the last 24 hours. A massive part of the momentum is connected to the inflation data that arrived on Wednesday. Specifically, it showed that inflation was down in the United States.
Also Read: Bitcoin: Novogratz Foresees $55K to $75K Trading Zone
This development remains critical for its implications for interest rate cuts in the United States. The Federal Reserve has implored a wait-and-see approach to such cuts while assuring that they will take place in 2024.
The cooperation of the inflation data increases the likelihood that those things will happen sooner rather than later. However, there is still concern regarding the speed of the inflation downturn, which may hinder multiple cuts from taking place this year.
Although inflation is playing a role in Bitcoin’s surge this week, it is not the full story. Alternatively, the Spot Bitcoin ETF market seems to be catapulting the asset to its recent levels.
Bitcoin ETFs Driving Price Surge?
Also Read: Spot Bitcoin ETFs Already BlackRock & Fidelity’s Most Popular
BTC has surged today due to the increasing reports of Bitcoin ETF exposure. Indeed, a host of financial institutions have emerged with significant holdings in Bitcoin investment offerings. Subsequently, those US Securities and Exchange Commission (SEC) filings have greatly propelled the asset’s value this week.
The list of banks that have recently disclosed Bitcoin ETF exposure includes JPMorgan and Wells Fargo, the first and third largest banks in the United States, respectively.
The list continued to grow as Switzerland’s largest bank, UBS, and one of Canada’s Big Five, Bank of Montreal, also disclosed Bitcoin ETF holdings.
Additionally, entities like the State of Wisconsin Investment Board have disclosed $99 million worth of BlackRock’s Spot Bitcoin ETF. These developments have increased the overall value of the influx of institutional interest.
Also Read: El Salvador Uses Volcano-Fuel To Mine 474 Bitcoin Worth $29 Million
Yet, the ETF market influence doesn’t stop there, as there is still anticipation for institutions that could still enter. Specifically, Vanguard announced the hiring of BlackRock’s former head of global ETFs, Salim Ramji, as its new CEO.
The investment management company had previously banned all spot Bitcoin ETFs in January of this year. However, the presence of Ramji has many investors speculating a shift from the firm.
Their embrace of the Bitcoin ETF market would be yet another trusted and prominent firm entering the fray. Subsequently, it should continue the trend of driving the price up as more institutional investors introduce Bitcoin exposure into their portfolios.