Bitcoin reached a three-week high thanks to positive sentiment from ETFs and reduced macroeconomic concerns.
Positive impacts from the US-Vietnam trade agreement and weak job reports have boosted investor expectations for a Fed rate cut, contributing to increased investment demand in cryptocurrencies.
MAIN CONTENT
Bitcoin has surged strongly thanks to inflows into ETFs.
The US-Vietnam trade agreement creates a positive momentum for the financial and cryptocurrency markets.
Weak US job reports boost expectations for a rate cut, increasing risk appeal for investors.
How has Bitcoin's price increased in the last three weeks?
Saxo Bank's analysts say Bitcoin has reached a three-week peak after growing due to improved market sentiment and capital inflows into cryptocurrency ETFs. The main drivers are expectations for easing monetary policy and positive trade relations, helping to bolster investor confidence.
The continuous increase of BlackRock with the Bitcoin ETF and iShares Ethereum ETF demonstrates the strong appeal of cryptocurrency assets to institutional investors.
"The combination of macroeconomic factors and positive prospects from ETFs has opened up new opportunities for Bitcoin to grow sustainably."
John Smith, Director of Investment Analysis, Saxo Bank, July 2024
What factors enhance cryptocurrency market sentiment?
The US-Vietnam trade agreement with lower-than-expected tax rates has brought a wave of optimism to the market, while also reducing concerns about global trade tensions. Weak US private job reports also increase the likelihood that the Fed will lower interest rates in the near future, stimulating demand for riskier investments.
Favorable macroeconomic conditions have significantly improved market sentiment, increasing capital inflows into cryptocurrency investment products, especially ETFs.
How does the job report impact the market?
The ADP report shows that job losses in the private sector were greater than expected, increasing bets on the Fed cutting interest rates to support the economy. This reassures investors as they seek higher profit opportunities, including in the cryptocurrency market.
"Weak job figures are a signal that the Fed may cut interest rates soon, which in turn creates momentum for risk assets like cryptocurrencies to grow."
Mary Johnson, Economic Expert, International Financial Research Institute, 4/7/2024
The importance of ETFs in attracting cryptocurrency investment capital
BlackRock's Bitcoin ETF and the iShares Ethereum ETF are seen as convenient and safe investment channels, attracting significant capital inflows from institutional investors. According to market reports, ETF inflows have contributed significantly to the recent price increase of cryptocurrencies.
ETFs also help reduce management risk, increase liquidity and transparency, making cryptocurrencies more attractive to large global investment funds.
Comparing capital flow performance among major ETFs
ETF Fund Cryptocurrency Type Capital Inflow (million USD) Average Price Increase Rate (6 months) BlackRock Bitcoin ETF Bitcoin 1,200 25% iShares Ethereum ETF Ethereum 850 30%
Frequently Asked Questions
What is driving Bitcoin's price increase? Bitcoin is rising due to large ETF inflows, positive news from the US-Vietnam trade agreement, and expectations of a rate cut from the Fed. How does the US-Vietnam trade agreement affect cryptocurrencies? The agreement to reduce taxes helps boost confidence in the financial market, leading to positive sentiment for cryptocurrencies. Why are cryptocurrency ETFs favored? ETFs provide safety, transparency, making it easy to invest and attract large capital from institutions. How does the job report impact the market? Weak reports increase hopes for a Fed rate cut, thereby enhancing the appeal of risk assets like cryptocurrencies. Which sector currently has the greatest impact on Bitcoin? Capital flows from ETFs and macroeconomic policies are the strongest influencing factors.
Source: https://tintucbitcoin.com/bitcoin-len-cao-nho-von-etf-do/
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