Bitcoin Surpasses $64K as BTC Futures Attract Billions; BoJ’s Halt in Rate Hike Boosts Risky Assets
Open interest data fromCoinGlass reveal a nearly $5 billion surge in bitcoin futures since Tuesday.
Solana’s SOL and ether experience a 7% surge, leading the crypto market in gains.
Bitcoin (BTC) continues its upward trend, recording a 10% increase for the week amidst key events such as rate cuts by the U.S. Federal Reserve, a pause in cuts by the Bank of England, and the Bank of Japan’s decision to hold rates on Friday.
During the Asian morning hours on Friday, BTC briefly surpasses the $64,000 mark before retracing its gains, following the Bank of Japan’s unchanged policy. This decision aimed to prevent a market crash similar to what happened in July after the bank’s rate hike.
Traders note that macroeconomic data suggests growing optimism for riskier assets like bitcoin in the coming months. QCP Capital traders highlight the inverted U.S. 2Y/10Y treasury spread, an indicator of a recession since July 2022, steepening to +8bps recently. This reflects market optimism and a shift towards risky assets.
The inversion of short-term debt instruments with higher yields than long-term ones typically signals risks for assets and the economy. It implies restrictive monetary and fiscal policies, which could potentially lead to economic contraction in the future.
The surge in bitcoin futures by nearly $5 billion since Tuesday indicates new capital entering the market, driven by expectations of future volatility. Traders are mostly favoring long positions, as the ratio between active buying and selling volumes indicates.
Over the past 24 hours, the crypto market has seen significant gains, led by meme and layer-1 tokens. Solana’s SOL and ether (ETH) experience a 7% surge, while Avalanche’s AVAX, Aptos’ APT, and Immutable’s IMX record jumps of up to 12%.
Meme coins, including bonk (BONK), also witness a surge of up to 10%, suggesting a return of risk-on behavior among investors.
The CoinDesk 20 (CD20), a liquid fund tracking the largest tokens by market capitalization, rises by 3.5%.