Update 5/16 below. This post was originally published on May 15

Bitcoin
Bitcoin
rose suddenly, rising after the latest US inflation data showed that price pressure had resumed its downward trend (with some speculating that a “huge” earthquake in China could be coming).

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The price of bitcoin surpassed $65,000 per bitcoin for the first time since early May as traders increase their bets that the Federal Reserve will soon declare victory in its war on inflation and cut interest rates.although Elon Musk recently joined other high-profile investors in warning that “stealth money printing” could destroy the US dollar.

Ahead of Key Inflation Data That Sent Ethereum, XRP
XRP
and with the broader crypto market surging, one bullish bitcoin investor has predicted that there is “$6 trillion in cash on the sidelines” that could drive the price of bitcoin to $150,000 this year – calling it the latest bull run in the world. “still early” bitcoin.

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ForbesInsider Generates Wild Speculation: An ‘Absolutely Huge’ China Price Earthquake Could Be About to Hit Bitcoin and Crypto By Billy Bambrough

Bitcoin, Ethereum, XRP and crypto traders are increasingly betting on Federal Reserve Chairman Jerome… [+] Powell will cut interest rates this year – potentially driving up the price of bitcoin.

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“Bitcoin is still at the beginning of a bull cycle,” said Tom Lee, managing partner and head of research at Fundstrat Global Advisors. counted CNBC. “So the idea that it could reach $150,000 this year is still within our base case.”

The latest monthly US consumer price index data showed that the pace of US inflation eased slightly in April, rising 0.3% versus 0.4% in March and economists’ forecasts of 0.4%.

“I think it helps that the Fed is reiterating its view on inflation and is relatively more dovish than the market,” Lee said. “So I think that’s why the markets are rallying.”

The price of bitcoin has soared about 75% since the start of the year, rising along with expectations that the Federal Reserve will begin cutting interest rates this year.

“We know there is a lot of pent-up demand,” Lee said. “Capital spending is increasing, ISMs [international securities markets] are showing up, there’s $6 trillion in cash sitting on the sidelines, and people have been cautious for over two years.”

Update 5/16: The world’s largest futures exchange operator, CME, is preparing to launch additional spot bitcoin trading, it was reported by the Financial Times, citing a leak from three anonymous sources.

The unconfirmed plan to open the CME to bitcoin trading is a response to Wall Street’s “growing demand” for bitcoin following the launch of a fleet of spot bitcoin exchange-traded funds (ETFs) in January – highlighting the amount of capital that remains “on the sidelines” of the bitcoin and crypto market.

The 11 bitcoin spot ETFs that exploded onto Wall Street earlier this year have taken the financial establishment by storm, skyrocketing to about $50 billion in combined assets under management since January and becoming some of the fastest-growing ETFs on record.

BlackRock

Black stone
IBIT’s bitcoin spot ETF led the pack, growing to nearly $17 billion in assets under management and now looks likely to soon unseat Grayscale’s GBTC as the largest bitcoin fund that has nearly $18 billion in assets.

However, some bitcoin and crypto market analysts have downplayed the Federal Reserve’s long-term impact on the price of bitcoin.

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Forbes ‘Beyond’ $20 Trillion by 2030 – Jack Dorsey’s Plan to Boost Bitcoin Price By Billy Bambrough

The price of bitcoin has reached its 2021 peak, boosting the price of ethereum, XRP and the broader crypto… [+] Marketplace.

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“While Federal Reserve policies may induce volatility in the short term, they do not fundamentally change the long-term trajectory of bitcoin,” Leena ElDeeb, a research associate at bitcoin and crypto investment firm 21Shares, said in emailed comments. “Therefore, Bitcoin currently occupies a unique position as both a risk- and risk-free asset, navigating unique market dynamics.”

Bitcoin’s price rally this year has been turbocharged by a fleet of new Wall Street spot bitcoin ETFs, opening up the bitcoin market to large groups of investors who consider cryptocurrency exchanges risky.

Last month, a major Wall Street bank leak suggested that brokers could soon get the green light to recommend spot bitcoin ETFs to their clients.

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