Bitcoin Hits New High: US Economic Easing Fueling Rise

Bitcoin has achieved a new all-time high of $118,800 on platforms like Coinbase, bolstered by consistent inflows into spot ETFs and predictions of monetary easing. Analyst Nicolai Sondergaard from Nansen stated that recent US policy changes, including fiscal expansions and expectations of further monetary easing, have created a conducive environment for Bitcoin. These developments, particularly the passing of Donald Trump’s 'Big Beautiful Bill,' are expected to lead to increased budgetary stimulus and money printing within the US, positively impacting Bitcoin's long-term outlook as a hedge against currency devaluation. The price surge accelerated after Bitcoin surpassed critical liquidation levels last Thursday. Data from CoinGlass shows that more than $1.1 billion in short positions were liquidated as Bitcoin set multiple price records on July 10-11. The sustained open interest suggests that bullish investors still have ample opportunities. Sondergaard also highlighted positive momentum in Ether, which has risen alongside Bitcoin and crossed the $3,000 mark for the first time since February, driven by a record $300 million in daily inflows to BlackRock’s spot Ethereum ETF as institutional interest grew. The rally continues ahead of significant macroeconomic events. BTC's latest ascent is part of a trend that started in April when the leading cryptocurrency fell to $74,000 due to tariff concerns. Since then, Bitcoin has risen over 58%, achieving a market cap of $2.3 trillion. Analysts from Standard Chartered forecast Bitcoin could surpass $135,000 by the end of Q3, while Bitwise sets a target of $200,000 by year-end. The total cryptocurrency market capitalization has recovered past $3.6 trillion, with major coins like ETH and SOL showing substantial gains. Traders are now focused on two key events: the consumer price index report on July 15 and the FOMC meeting on July 30. Fed Governor Christopher Waller has suggested that cooling inflation could prompt a rate cut this month, aligning with calls for relaxed monetary policy, although the futures market indicates only a 7% chance of a cut, with a 93% likelihood that rates will remain steady. Disclaimer: The Block is an independent media outlet providing news and research. As of November 2023, Foresight Ventures is a major investor in The Block. This article is for informational purposes only and does not constitute financial advice.