Bitcoin Tops $66,000 as Interest Rate Cuts Loom

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Bitcoin price is around $66,200, up about 6% in the last 24 hours, after its best day in two months. BTC rose more than 7.5% on Wednesday after US inflation data increased the likelihood of an interest rate cut by the Fed in the coming months. Like other risk assets, BTC is sensitive to expected changes in the monetary policy of major central banks and recovers when the cost of borrowing is expected to fall. Markets also expect the Bank of England and the European Central Bank to cut rates in June. The broader digital asset market is up more than 6% in the past 24 hours, as measured by the CoinDesk 20 Index (CD20).

Chicago Mercantile Exchange (CME) plans to offer bitcoin spot trading in response to customer demandaccording to the Financial Times. Already the leading Bitcoin futures exchange, CME aims to take on Binance and Coinbase, which dominate the spot market. “Cryptocurrency exchanges could lose some business with the potential arrival of a bitcoin spot market on CME, a global derivatives giant, as the current uptrend is particularly driven by institutions, which prefer trading on regulated channels,” Markus Thielen, founder of 10x Research, indicated that spot trading activities could be managed through the EBC foreign exchange trading platform in Switzerland, the report added.

ShibaSwap, the decentralized exchange associated with Shiba Inu meme coin expanded to Ethereum Layer 2 Shibarium. Users can now launch new liquidity pools on Shibarium, allowing traders to trade tokens on the network and benefit from reduced trading fees for providing liquidity. Developers said increased use of the Shibarium blockchain for transactions would result in a higher burn rate for the SHIB token, thereby reducing supply. SHIB price increased by 8.8% in the last 24 hours, in line with the broader market rally. “The more transactions there are on the Shibarium blockchain, the more base gas fees the protocol will burn, impacting the overall burn rate of $SHIB,” they said.

Chart of the day

(Cash)

• The chart shows that on Wednesday, the dollar value locked in the number of PEPE perpetual futures contracts open on Binance hit a record $285 million. Futures contracts are sized at 1,000 PEPE per contract.

• Data shows fast money is chasing cryptocurrencies again, as weak US data has increased investor appetite for risky assets.

• Source: Coinglass

-Omkar Godbole

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