The Leak Reveals an ETF Perfect Storm Could Head Towards Bitcoin After $6 Trillion Fed Inflation Sparked a Crypto Price Surge

Update from 5/16 below. This post was originally published on May 15

Bitcoin
Bitcoin
has suddenly shot higher after the latest US inflation data showed that price pressures have resumed their downward trend (with some speculating that a “massive” earthquake in China could be looming).

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The price of bitcoin has breached the $65,000 per bitcoin mark for the first time since early May as traders ramp up their bets. The Federal Reserve will soon declare victory in its war on inflation and cut interest rates – although Elon Musk recently joined other leading investors in warning ‘stealth money printing’ could destroy the US dollar.

Ahead of the key inflation data that sent ethereum, XRP
XRP
and the broader crypto market higher, one bullish bitcoin investor predicted there is “$6 trillion in cash on the sidelines” that could push the bitcoin price to $150,000 this year – calling the latest bitcoin bull run “still early.” ”

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“Bitcoin is still in the early stages of an upcycle,” said Tom Lee, managing partner and head of research at Fundstrat Global Advisors. CNBC. “So the idea that it could reach $150,000 this year is still within our base case.”

The latest monthly US consumer price index data show the US inflation rate eased slightly in April, rising 0.3% from 0.4% in March, and against economists’ estimates of 0.4%.

“I think it helps that the Fed is reiterating its view on inflation and that it is relatively milder than where the market is,” Lee said. “So I think this is the process of why the markets are recovering.”

The price of bitcoin has risen about 75% since the start of the year, rising along with expectations that the Federal Reserve will cut interest rates this year.

“We know there is a lot of demand,” Lee said. “Capital expenditures are increasing, the ISMs [international securities markets] show up, there’s $6 trillion in cash sitting on the sidelines and people have been cautious for over two years now.”

05/16 update: World’s largest futures exchange operator CME gears up to launch add spot bitcoin trading, it was reported by the Financial Times, citing a leak from three anonymous sources.

The unconfirmed plan to open CME to bitcoin trading is in response to Wall Street’s “surging demand” for bitcoin following the launch of a fleet of spot bitcoin exchange-traded funds (ETFs) in January – which will increase the amount of capital emphasizes what remains. on the sidelines” of the bitcoin and crypto market.

The 11 spot bitcoin ETFs that exploded on Wall Street earlier this year have taken the financial establishment by storm, skyrocketing to about $50 billion in combined assets under management since January and becoming some of the fastest-growing ETFs ever.

BlackRocks

Black rock
IBIT spot bitcoin ETF has led the way, growing to nearly $17 billion in assets under management and it now seems likely that Grayscale’s GBTC will soon be toppled as the largest bitcoin fund with nearly $18 billion in assets.

However, some bitcoin and crypto market analysts have downplayed the Federal Reserve’s long-term impact on the bitcoin price.

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“While the Federal Reserve’s policies may cause volatility in the short term, they do not fundamentally change bitcoin’s long-term trajectory,” Leena ElDeeb, research associate at bitcoin and crypto investment firm 21Shares, said in an emailed commentary. “Therefore, Bitcoin currently occupies a unique position as a risk-on and risk-off asset, navigating unique market dynamics.”

This year’s bitcoin price rally has been fueled by a fleet of new Wall Street-spot bitcoin ETFs, opening up the bitcoin market to large groups of investors who view crypto exchanges as risky.

Last month, a major banking leak on Wall Street suggested that brokers could soon get the green light to recommend spot bitcoin ETFs to their clients.

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