After jumping above 86,000 dollars, investors are temporarily in consolidation mode. Inflows into Bitcoin spot ETFs, growing institutional demand, and regulatory steps in the US are acting as the tipping point.
On Thursday, the US SEC introduced a time-limited regulatory framework for the trading of tokenized securities. Investors are celebrating the advancing integration of blockchain technology and traditional capital market infrastructure.
Bitcoin
Investors hope for the integration of blockchain with traditional capital market infrastructure
Investors are likely to have rewarded the recent regulatory developments in the US in particular. Last Thursday, the US regulatory authority SEC announced that it would open the door to tokenized US stock trading for a limited period of five years. Investors are thus hoping for greater acceptance of blockchain technology, and thereby, among other things, for digital assets like Bitcoin.
US monetary policy likely to remain a topic – Trump-Xi meeting in focus
The monetary policy impulses from the past trading week are also likely to continue playing a central role. Even though the US Federal Reserve (Fed) raised the key interest rate level by 25 basis points as expected, investors may have liked the independence of the Fed communicated by Fed Chair Kevin Warsh.
The CME Group's „Fed Watch Tool“ currently indicates that 53.1 percent of market participants expect another interest rate hike of a quarter percentage point at the next scheduled meeting on October 28. 46.9 percent expect a rate pause. The interest rate band itself currently stands at 3.75 to 4.00 percent.
Also of interest on Thursday is likely to be the eagerly awaited meeting between US President Donald Trump and Chinese President Xi Jinping. Topics to be discussed include trade and artificial intelligence (AI).
