SUMMARY

• Bitcoin rose above $64,000 during early U.S. trading, buoyed by support from China’s Politburo and anticipation of remarks from Fed officials, including Chairman Jerome Powell.
• The approval of options trading on Blackrock’s IBIT may attract more retail and institutional investors to Bitcoin.

Bitcoin (BTC) is peering toward the $65,000 level, a target not achieved since the first week of August, as expectation builds around Federal Reserve Chair Jerome Powell’s speech, which may serve as a significant catalyst. Traders at Singapore-based QCP Capital emphasized that the market will closely monitor Powell’s address for any signs of shifts in sentiment following last Thursday’s FOMC press conference, which indicated at the potential for further easing in monetary policy. Powell is scheduled to talk at 13:30 UTC during the U.S. Treasury Market Conference, amid increasing expectations for an extra interest rate cut in the U.S. this year. Last week, the Federal Reserve declared its first round of cuts, inciting a rally in risk resources, including Bitcoin. Traders are presently anticipating a 62% probability of another 50-basis point reduction in November, concurring to the CME FedWatch Tool.

In a related setting, gold has reached a new series of record highs, climbing about 1% to surpass $2,700 per ounce. In the meantime, reports indicate that China is contemplating a $142 billion capital injection into its banking division, along with a few other stimulus measures. This news contributed to the Shanghai Composite index soaring by 3.6%, setting it on course for its best week in a decade. U.S. stock index prospects are moreover trading approximately 1% higher.

The appeal of Bitcoin is gaining footing among both retail and institutional investors. Information from SoSoValue shows that total daily net inflows into Bitcoin ETFs outperformed $100 million for the second successive day, reflecting a five-day streak of positive net inflows for these funds. Furthermore, retail investors have procured 35,000 BTC over the past 30 days, displaying increased confidence and engagement from smaller holders.

Furthermore, the recently approved options trading on Blackrock’s Bitcoin Trust (IBIT) has situated BTC for potential future rallies. Onchain analysis firm CryptoQuant noted that this endorsement would improve liquidity and investor interest in the Bitcoin market, marking a noteworthy step toward broader institutional adoption. Importantly, Bitcoin options on the CME recently reached a record open interest of about half a billion on March 12, 2024, demonstrating a nearly five-fold increment from their maximum levels in 2023.