Asia’s business week began with significant gains in major cryptocurrencies, with the CD20 index surging by 5%. This surge can be partly attributed to the initiation of a global easing cycle, marked by the Swiss National Bank’s decision to reduce interest rates, making it the first major central bank to do so.
As the Asia trading day commenced, the crypto market saw bullish momentum, fueled by optimism surrounding BlackRock’s venture into asset tokenization and the commencement of central bank easing worldwide.
Bitcoin (BTC), the leading digital asset, recorded a 4.9% increase over the past 24 hours, trading at $67,300, while Ether experienced a 4.7% surge, reaching over $3,400. The CoinDesk 20 (CD20), which tracks the most liquid cryptocurrencies, demonstrated a notable 5% uptick at the time of reporting.
Analysts, such as Bradley Park from CryptoQuant, suggest that the market’s positive response is due to the anticipation of BlackRock’s fund focusing on tokenized products built on Ethereum, known as BUIDL.
Short positions betting against Bitcoin and Ether are facing significant losses, with over $100 million in leveraged futures positions liquidated within the past day. Notably, approximately $60 million of these liquidations come from short positions in Bitcoin, with an additional $42.8 million from short positions in Ether.
Moreover, the slowdown in selling pressure from the Grayscale Bitcoin Trust (GBTC) may also be contributing to Bitcoin’s rise. Analysts highlight Genesis’ recent sale of GBTC shares as a factor behind the decrease in GBTC outflows.
On a macro level, bullish trends persist. The unexpected interest rate cut by the Swiss National Bank has set off a chain reaction of easing measures globally. The Central Bank of Mexico also followed suit with rate cuts, while the Federal Reserve, the European Central Bank, and the Bank of England have laid the groundwork for forthcoming liquidity easing initiatives.
The founder and manager of the Blokland Smart Multi-Asset Fund noted that despite the anticipation of a market correction, the medium-term outlook remains optimistic for various assets, including equities, residential real estate, gold, and Bitcoin. This perspective aligns with the fresh all-time highs witnessed in equities and gold, signaling the onset of the global easing cycle.