Bitcoin rose to up to $70,000 on June 3, signaling a bullish outlook for the flagship cryptocurrency. This price escalate is believed to be due to some recent developments that are positive for the market Bitcoin ecosystem.

Interest rate cuts may occur in September

Data from the CME FedWatch Tool shows that the probability Fed cut interest rates to 25 basis points increased to 51.3%. Meanwhile, the probability of interest rates remaining at 50 basis points is 40.1%. This heightened expectation of a rate cut comes despite recent inflation, which has led to mixed feelings about the U.S. economy.

The US S&P Global Manufacturing PMI rose to 51.3 in May from 50.0 in April, showing the greatest improvement. However, the ISM Manufacturing PMI fell from 49.2 to 48.7. Investors remain confident that interest rates will be lowered by September. Some interest rate reduction is positive for Bitcoin and the broader cryptocurrency market as it will escalate investor confidence in investing in these risky assets.

Meanwhile, another positive development for Bitcoin is the fact that Spot Bitcoin ETF are again recording impressive net inflows. These funds registered a weekly total net receipts last week it was $170.9 million. These Spot Bitcoin ETFs also started the novel week on a positive note, recording net inflows of $105.1 on June 3.

This development is significant considering that these funds played a key role in sending Bitcoin to novel all-time record (ATH) in March. As such, they could once again serve as a catalyst once the flagship cryptocurrency successfully emerges from the crisis $70,000 range and rise above the current ATH of $73,750.

Moreover, the increased demand for these funds comes at a time when Ethereum Spot ETF trading will begin soon. These changes paint an extremely confident picture not only of Bitcoin, but of the entire cryptocurrency market.

Bitcoin still far from market peak

Crypto Con cryptocurrency analyst noted in a recent post on X (formerly Twitter) that Bitcoin is still far from its market peak. He made this remark referring to logarithmics Market value to realized value, which showed that “there is still ample room for growth to reach the highest level in the cycle.” However, the cryptocurrency analyst added that this cycle may be much further along than “it would appear on the surface.”

Cryptocurrency analyst Tarekonchain also shared a similar opinion: stating that Bitcoin has not yet reached its fair market value, with its MVRV being around 2.3. He further revealed that Bitcoin price has peaked in previous cycles when the MVRV indicator reached 3.5 or higher, meaning that running of the bull still far from finished.

Featured image created with Dall.E, chart from Tradingview.com