According to the analytical company IntoTheBlock, last week Bitcoin received $860 million in liquidity inflows on cryptocurrency exchanges, which is the highest level since March of this year.
Craig Erlam, senior market analyst at OANDA, noted that the volume of new liquidity at auction is the norm for digital assets.
Market participants expect interest rates to fall in the US, UK and Europe over the next few years, which will be beneficial for risky assets. Dow Jones Industrial Average, which reached an all-time high this week, highlighted the improvement in investor attitudes towards cryptocurrency.
Anthony Russo, head of brokerage solutions at TradeStation, said that hints from the Federal Reserve System to ease monetary policy and lower rates next year have strengthened confidence in the cryptocurrency. At the same time, the most common topic remains the approval by US regulators of spot exchange-traded funds Bitcoin ETFs from BlackRock and other companies.
According to Russo, a perfect storm is brewing in the crypto markets for a strong 2024 with the possibility of reaching a historic high by the end of the year.