Bitcoin experienced a notable surge due to macro and micro factors. Vanguard’s platform now supports third-party crypto ETFs, including BTC, ETH, XRP, and SOL. Market structure amplified the rally as Bitcoin broke through a key resistance level.
What to Know:
- Bitcoin experienced a notable surge due to macro and micro factors.
- Vanguard’s platform now supports third-party crypto ETFs, including BTC, ETH, XRP, and SOL.
- Market structure amplified the rally as Bitcoin broke through a key resistance level.
Bitcoin recently saw an impressive 11% jump, moving from lows of $83,822.76 to over $93,000, fueled by a combination of macroeconomic shifts and specific crypto-market developments. The Federal Reserve’s decision to halt quantitative tightening (QT) played a significant role, alongside substantial liquidity injections into the financial system. This confluence of events created a favorable environment for Bitcoin and other cryptocurrencies.
The end of QT and the injection of liquidity tend to benefit high-beta assets by lowering borrowing costs and increasing the dollar supply. This shift provided immediate relief to the crypto market, triggering a positive response from traders and investors alike.
Adding to the bullish sentiment, weak US manufacturing data increased the likelihood of a rate cut, further stabilizing risk assets. The ISM manufacturing PMI’s continued contraction bolstered expectations of a potential rate cut at the upcoming FOMC meeting, adding another layer of support for Bitcoin.
A major catalyst for Bitcoin’s rally was Vanguard’s decision to open its brokerage platform to third-party crypto ETFs and mutual funds, including those tied to BTC, ETH, XRP, and SOL. This move provided immediate demand pressure, with BlackRock’s IBIT ETF experiencing significant trading volume in the initial hours.
The market structure also played a crucial role in amplifying Bitcoin’s upward movement. After a challenging November, which saw BTC drop below $84,000, bearish positioning and “extreme fear” sentiment created conditions ripe for a short squeeze.
In conclusion, Bitcoin’s recent rally can be attributed to a combination of macro-driven factors, such as the Fed’s policy shift and liquidity injections, and micro-level catalysts, including Vanguard’s platform opening and positive ETF flows. While this rebound offers some relief, it remains to be seen whether it signals a complete reversal of the broader downtrend.
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Source: Original article
Quick Summary
Bitcoin experienced a notable surge due to macro and micro factors. Vanguard’s platform now supports third-party crypto ETFs, including BTC, ETH, XRP, and SOL. Market structure amplified the rally as Bitcoin broke through a key resistance level.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
