What happened?
Bitcoin is trading at $113,884, marking a 2.25% increase over the last 24 hours, with daily volumes exceeding $56.3 billion. This movement comes in the wake of an unexpected drop in U.S. producer prices in August. Additionally, Cboe has announced plans to launch 10-year Bitcoin and Ethereum futures, pending approval.
Who does this affect?
This affects Bitcoin traders and investors, as well as institutions looking for long-term exposure to Bitcoin and Ethereum without the need for constant rollovers. The announcement from Cboe could also potentially increase market participation. Furthermore, this could impact countries like Kyrgyzstan, which are looking to diversify their state holdings by creating state-backed crypto reserves.
Why does this matter?
This situation matters because the softer data may prompt the Fed to adopt a more dovish stance in September, which would be supportive for risk assets like Bitcoin. In addition, the proposed changes by Cboe indicate a possible institutionalization of cryptocurrency. This paired with global adoption and regulatory clarity may serve as tailwinds for Bitcoin’s long-term trajectory.