Bitcoin traders are once again targeting a price goal of $70,000, following a brief dip in the cryptocurrency market on Friday evening, with the U.S. cryptocurrency exchange-traded fund (ETF) continuing to maintain robust inflows.
Stephane Ouellette, co-founder and CEO of FRNT Financial, stated: "This is a continuation of the trend we've been seeing recently in the crypto market." He noted, "We are in the early stages of a global liquidity cycle, with expectations of lower interest rates and liquidity from fiscal policies that will drive Bitcoin higher over the long term."
Last weekend, the cryptocurrency market had experienced a decline due to reports that the U.S. was investigating the stablecoin issuer Tether Holdings Ltd. for potential violations of sanctions and anti-money laundering regulations. In response, a Tether spokesperson stated that the company was unaware of any investigation.
Stablecoins like Tether play a crucial role in the cryptocurrency market as they act as a bridge between fiat currency and cryptocurrencies, allowing users to exchange fiat for cryptocurrencies like Bitcoin and vice versa. Additionally, stablecoins such as Tether are often used as collateral for crypto loans. Tether is the most traded cryptocurrency globally.
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The market's enthusiasm for Bitcoin is growing. According to a report by CoinShares, last week's total inflow into digital assets reached $910 million, bringing the year-to-date inflow to $27 billion, nearly three times the record level set in 2021.
The report also noted that almost all inflows were concentrated in Bitcoin, while Ethereum experienced an outflow of $35 million last week, the largest among all assets during the same period.
Furthermore, options traders are also increasing their bets that Bitcoin will hit a new high of $80,000 by the end of November. Traders' bets are skewed towards call options, which give the buyer the right to purchase Bitcoin at new highs.
In March of this year, Bitcoin had soared to an all-time high of $73,797, driven by optimistic ETF demand, before falling by over 30% in early August and initiating the current bull market.
"Last week, billionaire hedge fund manager Paul Tudor Jones viewed Bitcoin as a hedge against inflation, especially against the backdrop of increasingly strong expectations of fiat currency devaluation," Ouellette added. "This dynamic will continue to benefit Bitcoin, as its long-term growth potential expands with new market participants incorporating Bitcoin into their investment portfolios in the next market cycle."
On Monday, Bitcoin-related stocks collectively rose, with Coinbase (COIN.US) up over 5%, MicroStrategy (MSTR.US) up nearly 9%, Bit Digital (BTBT.US) up over 9%, and MARA Holdings (MARA.US) up over 11%.