Bitcoin (BTC) has surged close to $64,000, extending its one-week gains to 10%. This increase follows significant market activity, including rate cuts by the U.S. Federal Reserve and a pause in rate changes by the Bank of Japan (BoJ).
Surge in Bitcoin Bets
Recent open interest data from CoinGlass indicates a nearly $5 billion rise in bitcoin bets since Tuesday, suggesting strong investor interest amid expectations of market volatility. Traders are increasingly leaning towards long positions, indicating a preference for betting on higher prices.
Market Reactions to Central Bank Decisions
On Friday, BTC briefly crossed the $64,000 mark during the Asian morning session before slightly retracting. The BoJ’s decision to maintain its current policy has avoided a repeat of July’s market downturn, which followed a previous rate hike.
Traders are expressing optimism for riskier investments like bitcoin. QCP Capital noted in a market update that the U.S. 2Y/10Y treasury spread, a recession indicator, has steepened recently, signaling a shift towards risk-on assets.
Broader Crypto Market Gains
In the last 24 hours, the broader crypto market has seen significant gains, with Solana’s SOL and ether (ETH) rising as much as 7%. Other cryptocurrencies, including Avalanche’s AVAX, Aptos’ APT, and Immutable’s IMX, have jumped up to 12%.
Memecoins also showed strength, with bonk (BONK) surging by 10%. The CoinDesk 20 (CD20), which tracks the largest tokens by market capitalization, increased by 3.5%, highlighting a return of risk-on sentiment across the crypto landscape.
