Bitcoin has just reached a record level of 118,000 USD, thanks to two important macroeconomic factors driving strong growth.
Two main impacts include increased production imports to avoid tariffs and the U.S. Treasury's short-term bond issuance strategy stimulating liquidity, helping the financial and cryptocurrency markets grow steadily.
MAIN CONTENT
Bitcoin surpasses the price of 118,000 USD thanks to increased trade and credit activity.
The short-term bond issuance strategy helps reduce interest rate volatility, promoting market stability.
The inflow of capital into ETFs and cryptocurrency treasuries continues to increase, driving sustainable buying momentum.
Why did Bitcoin hit a new peak of 118,000 USD?
Experts at QCP Capital confirm that this price surge stems from two main causes: increased imports ahead of tariffs and the U.S. Treasury's debt issuance policy. These are practical factors that have supported market liquidity and stimulated demand for digital assets.
Surging import flows facilitate the expansion of trade credit, and rising copper prices reflect better industrial demand. This boosts financial assets, including Bitcoin, all growing simultaneously.
Bitcoin is benefiting from a favorable macroeconomic environment, with abundant liquidity and positive economic growth, paving the way for the next boom phase of the cryptocurrency market.
Statement from the Chairman of QCP Capital, July 2024
How does the U.S. bond issuance strategy affect the market?
The short-term bond issuance strategy instead of long-term bonds implemented by the U.S. Treasury is an innovative step to stabilize interest rates. This is an experience highly regarded by financial experts, helping to minimize volatility, keep the MOVE index low, and narrow the credit spread.
This move causes short-term bonds to be increasingly seen as a cash alternative, contributing to a stable asset base and sustainable growth.
How does the cash flow into ETFs and cryptocurrency treasuries impact the market?
According to the latest report, capital flowing into publicly traded cryptocurrency ETFs and treasuries is far exceeding the amount of Token issuance and miner sales activities. This is a positive signal indicating that the buying momentum in the structure still exists, thanks to the ability of ETF shares and treasuries trading above NAV.
This situation is expected by experts to maintain the upward momentum, reinforcing the price trend of Bitcoin and similar digital gold.
When cryptocurrency ETFs and treasuries maintain prices above net asset value, natural buying momentum will continue to stabilize, creating a sustainable development environment for cryptocurrencies.
Insights from a financial analyst, July 2024
Macroeconomic news and copper price developments
Copper prices have been rising continuously alongside improvements in global stock indices, indicating robust industrial health and liquidity being strongly reinforced. This is a key factor driving safe-haven assets like gold and Bitcoin to rise together, reflecting the demand for risk hedging from exchange rate volatility.
International economists assess that when other asset indices create new bottoms and act in sync, Bitcoin and gold will become safer investment channels and more attractive growth options.
Comparison table of cash flow efficiency into asset channels in 2024
Asset Channel Capital Flow Market Impact Notable Features Bitcoin Strongly increases, surpassing Token issuance Sustainable growth, record 118,000 USD High ETF cash flow, institutional investors increasing purchases of U.S. short-term bonds Stable and increasing Reducing interest rate volatility, narrowing spreads Seen as a cash alternative Copper price Continues to rise Reflecting industrial credit improvement Reflecting global manufacturing health
Frequently Asked Questions
What is driving Bitcoin's price increase this time? Mainly due to increased production imports ahead of tariffs and the flexible bond issuance policy of the United States. (Source: QCP Capital) How does the bond issuance strategy impact the market? It helps stabilize interest rates, reduce financial volatility, and maintain liquidity for the market. (Source: U.S. Department of the Treasury, 2024) Is the inflow of capital into ETFs and cryptocurrency treasuries important? Very important, creating continuous buying pressure, supporting Bitcoin's price increase. (Source: 2024 Cryptocurrency Industry Report) How does the rising copper price affect cryptocurrencies? It reflects improvements in the manufacturing sector, contributing to increased demand for investment in digital assets. (Source: LME Metal Exchange, 2024) How to know if the cryptocurrency market is stable? By examining bond interest rate fluctuations, ETF capital flows, and related asset prices, experts assess it as a reliable channel. (Source: Expert QCP Capital, 2024)
Source: https://tintucbitcoin.com/bitcoin-lap-dinh-moi-nho-tai-khoa/
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