Updates
The Impact of Rising Token Prices on Stablecoins with Borderless CEO Kevin
Nov 18, 2024
November 18, 2024 – Borderless.xyz CEO Kevin Lehtiniitty shared his insights on the recent surge in Bitcoin and Ethereum exchange-traded funds (ETFs) following a report by MarketWatch. The article highlights Bitcoin ETFs’ $1.67 billion in net inflows last week, marking a sixth consecutive week of positive growth and bringing total investments to $27.46 billion. Ethereum ETFs also saw strong growth, with net inflows of $515.2 million last week and cumulative net inflows of $178.4 million since their launch in July.
Despite these positive trends, market analysts are taking a cautious stance, predicting limited price movement in Bitcoin options. Many traders anticipate lower trading prices for Bitcoin in the short term, as implied volatility points to reduced market movement.
However, Bitcoin’s price is currently trading near $90,000, reflecting substantial growth since the beginning of the year. Lehtiniitty explained that this surge in Bitcoin’s price is prompting a shift in investor behavior, with funds moving from stablecoins into other cryptocurrencies. This shift could create increased sell pressure on U.S. Treasuries, particularly as stablecoin collateral is heavily invested in them, and the Federal Reserve is expected to cut interest rates. This environment may pave the way for further bullish momentum in Bitcoin as investors increasingly turn to riskier assets.
For the full article, please visit Market Watch.
