Bitcoin price hits record highs at $72k

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By Creative Media News

  • Bitcoin hits $72,000 high
  • ETF flows, Fed cuts expected
  • Gold prices also reach record

Bitcoin continued its recent ascent to a new all-time high near $72,000 on Monday morning, propelled by market anticipations of impending interest rate cutbacks by the Federal Reserve.

In mid-morning, the largest cryptocurrency in the world was trading at $71,700, an increase of 3.1% for the day and over 60% since the beginning of the year.

Moreover, flows into recently introduced US spot Bitcoin ETFs, which have accumulated flows exceeding $106 billion since the beginning of the year, continue to fuel Bitcoin’s momentum.

On Friday, weaker-than-anticipated US labor market data increased outlooks for a June rate cut by the Federal Reserve.

According to CME Group data, market pricing presently assigns a 73.9% probability that the Federal Reserve will reduce its existing target rate range of 5.25 to 5.5 percent by 25 basis points in June, bringing it down to 5 to 5.25 percent.

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Additionally, global expectations of interest rate reductions have contributed to gold’s record highs.

The LBMA London Gold Price increased 4.2% last week, reaching $2171.20 on Friday evening, bringing the total gain for 2024 to 18.3%.

Ned Naylor-Leyland, gold and silver investment manager at Jupiter Asset Management, remarked, “Gold is perpetually forward-looking and has thus largely assimilated a diminished outlook for Fed rate cuts in 2024 (the bond market anticipates three cuts by year’s end).”

Furthermore, the markets are becoming increasingly optimistic about the anticipated shift of the Federal Reserve towards a more accommodating monetary policy position. This has contributed to the recent upward trend in gold prices.

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