Bitcoin Surge Adds $150 Billion to Crypto Market

What to Know:

• Bitcoin briefly touched $94,600, driven by institutional adoption and macro easing expectations.
• PNC Bank launched direct spot Bitcoin trading via Coinbase’s infrastructure, signaling further mainstream acceptance.
• Anticipation of Federal Reserve rate cuts and short liquidations amplified Bitcoin’s upward momentum.

Bitcoin (BTC) is showing strong momentum, trading around $92,900 after briefly hitting $94,600, fueled by a combination of traditional finance adoption and expectations of macro easing. The total crypto market capitalization saw a significant $150 billion inflow, reflecting a 3% gain. This surge indicates renewed investor confidence and potential for further gains in the near term.

Banks entering the spot market validate crypto as an asset class for risk-averse allocators who treat institution-backed custody and regulatory clarity as prerequisites for participation.

Markets are pricing in a Federal Reserve rate cut, easing anxiety over financial conditions across risk assets. Rate cuts lower the opportunity cost of holding non-yielding assets, making Bitcoin and other crypto more attractive relative to cash and short-duration bonds.

Bitcoin’s rally accelerated as it broke through the $89,000-$92,000 range, triggering stop-losses and forced liquidations for leveraged short positions. CoinGlass data revealed that $304.3 million of the $418 million liquidated in the past 24 hours were short positions, exacerbating the upward price movement.

The combination of institutional adoption, anticipation of Federal Reserve rate cuts, and significant short liquidations created a powerful tailwind for the cryptocurrency market. With altcoins outperforming Bitcoin, risk appetite seems to be returning to the more speculative areas of the crypto space, suggesting a potentially bullish outlook for the broader market.

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Source: Original article