Bitcoin (BTC) Price Rallies 4.5% Above $61K as Investors Show Renewed Interest

Bitcoin (BTC) climbed above $61,000 on August 20, 2024, as investors showed renewed interest in cryptocurrency.

Bitcoin’s price rose above $61,000 on August 20, 2024, as investors showed renewed interest in cryptocurrency amid positive developments in the crypto market and expectations about future central bank policies.

U.S. Bitcoin exchange-traded funds (ETFs) recorded a net inflow of over $61 million on August 20, marking the second-highest inflow day for Bitcoin ETFs this month. BlackRock's IBIT led the way with $92 million in inflows, while some other funds, like Bitwise's BITB, saw outflows.

In Japan, a company called Metaplanet announced that it had bought more Bitcoin, spending about $3.4 million to buy the cryptocurrency, bringing their total holdings to 360.368 BTC.

Other cryptocurrencies also saw price increases, with XRP and BNB both going up by over 7%. Solana’s SOL and Cardano’s ADA gained about 4% each. However, some tokens, like Toncoin (TON), saw small decreases.

Traders are now looking ahead to Friday, when Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole economic symposium, with many expecting him to hint at future interest rate cuts, which could affect both traditional financial markets and cryptocurrencies.

Some analysts are optimistic about Bitcoin's future price, with Jamie Coutts, an analyst at Real Vision, suggesting that it could reach $100,000 before the end of 2024. He bases this prediction on actions by central banks around the world, which he believes are increasing the global money supply.

“The central banks are capitulating, the liquidity spigots are opening, and #Bitcoin is about to go much higher,” Coutts wrote in a recent tweet.

“My composite global liquidity momentum model (MSI) has provided the first Bullish regime signal since November 2023.”

He added that the Bank of Japan and the People’s Bank of China have recently added a lot of money to their financial systems, and the global money supply has grown by $1.2 trillion, partly due to a weaker U.S. dollar.

Another analyst, known as “Milkybull Crypto,” is even more bullish, suggesting that Bitcoin's price could go as high as $190,000 in the fourth quarter of 2024. However, it's important to note that price predictions can be unreliable, especially in the volatile crypto market.

Stock markets also saw gains on August 20, with some investors betting that the Federal Reserve will cut interest rates soon, which could be driving up demand for riskier assets like stocks and cryptocurrencies.

However, there are potential risks to consider, such as the recent rapid increase in the value of the Japanese yen, which could affect cryptocurrency prices—earlier in August, a sharp increase in the yen's value led to a decrease in crypto prices.

As of August 20, 2024, Bitcoin was trading at $61,176.1, showing a 4.5% increase.

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