Bitcoin Breaks $65K for First Time Since August

Bitcoin has surged past $65,000 for the first time since early August, reigniting interest among investors, especially in U.S.-based spot Bitcoin ETFs. The cryptocurrency reached $65,400 during U.S. morning trading on Thursday, marking a 2.7% increase in just 24 hours.

This rise in Bitcoin’s price kicked off last week when the U.S. Federal Reserve took unexpected action, cutting interest rates by 50 basis points instead of the anticipated 25. This was the Fed’s first rate cut since the Covid pandemic, and traders are now expecting another 50-point reduction at the upcoming meeting in early November.

Beyond the Fed’s decision, another key driver on Thursday came from China. The Chinese government is reportedly considering injecting up to 1 trillion yuan ($142 billion) into its major state banks. This move aims to stimulate the struggling economy, a development that sent ripples through global markets, not just Bitcoin.

As a result, precious metals like gold and silver also saw price boosts. Gold surged to a new record high above $2,700 per ounce, and silver hit its highest price in 12 years.

At the same time, Bitcoin’s renewed momentum has brought attention back to U.S.-based spot Bitcoin ETFs, which saw over $500 million in inflows this week alone. The recent spike in Bitcoin’s price appears to have sparked renewed interest in these funds after a period of stagnation.