Bitcoin (BTC) saw a 10% increase over the past week, driven by global central bank decisions. Among the key events were interest rate cuts by the U.S. Federal Reserve, a pause from the Bank of England, and a decision by the Bank of Japan (BoJ) to hold rates steady. This prevented a repeat of July’s market chaos, which followed the BoJ’s rate hikes.
BoJ’s Decision Stabilizes Markets
On Friday, Bitcoin briefly crossed $64,000 during Asian trading hours before settling back. The BoJ’s choice to maintain its policy helped stabilize markets. Traders noted that the macroeconomic environment now favors riskier investments like Bitcoin.
According to QCP Capital, the steepening of the US 2Y/10Y treasury spread, now at +8bps, reflects market optimism. This shift toward risk-on assets is promising for Bitcoin in the coming months.
New Money Flows Into Bitcoin
Recent data from CoinGlass indicates a $5 billion surge in open interest for Bitcoin since Tuesday. This suggests that new money is entering the market, with traders leaning towards long positions, expecting higher prices ahead.
Altcoins and Memecoins Also See Gains
Alongside Bitcoin, other cryptocurrencies made significant moves. Solana’s SOL and Ethereum (ETH) both rose by 7%, while Avalanche (AVAX), Aptos (APT), and Immutable (IMX) saw gains as high as 12%. Memecoins, led by BONK, surged by 10%, signaling a renewed appetite for risk in the market.