Bitcoin Price Jumps to $63,594 as China Prepares $142B Bank Capital Injection
As inflows into Bitcoin ETFs continue to be favorable, Bitcoin traded at $63,594 during the early part of the Asian trading session on Thursday, up 2.41% over the week. The total daily net inflow for the BTC ETFs exceeded $100 million for the second day in a row, according to data from SoSoValue. This completes a five-day run of positive net inflows for the funds. Data from CryptoQuant indicates that this has, for the first time since September, turned a 30-day net holdings indicator for ETFs from negative to positive, pointing to a growing trend of accumulation rather than sales.
On the other hand, news that China is thinking of giving its largest state banks up to $142 billion in capital in order to strengthen their ability to sustain the faltering economy caused Asian stocks to soar higher. This is in line with an easing decision made earlier this week by the People’s Bank of China (PBOC), which reduced the interest rate at which a central bank borrows money from commercial banks by 20 basis points (bps) to 1.5% and slashed the reserve requirement ratio for mainland banks by 50 bps.
Ethereum Price Holds at $2,615 as ETH Outperforms BTC Amid Fed Rate Cuts
At $2,615, Ether is down 0.40% for the day and up 7.35% for the week. A second day of positive net inflow was recorded by spot ETH ETFs, according to data, with a daily net inflow of $43 million. Rising Ethereum gas expenses, caused by more network transactions, have coincided with ETH outperforming BTC after the Fed lowered interest rates by 50 basis points, according to a recent note by Presto Research. Presto Write notes that some investors are planning for a possible recovery in total value locked (TVL), even though on-chain yields are still lower than the three-month Treasury bill. Maybe not until 2025, though, will there be a larger capital movement.
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