Bitcoin rose above the $64,000 level in the morning hours of the US, attracting attention after the news that the Chinese Politburo promised continuous support to the country’s economy and markets.

This has led to increased interest among investors ahead of the speech by Federal Reserve (Fed) officials, especially Fed Chairman Jerome Powell.

Bitcoin (BTC) is focusing on the $65,000 level, which it has not reached since the first week of August. Powell’s speech is seen as a potential catalyst that could influence changes in sentiment in the markets.

“The market will be watching Powell’s speech carefully, particularly looking for any indication of changes in sentiment following last Thursday’s FOMC press conference,” said a trader at Singapore-based QCP Capital.

However, Powell’s lack of any comments on monetary policy or the economic outlook attracted investors’ attention.

Last week, the Fed announced its first steps towards interest rate cuts, sending risky assets like Bitcoin soaring. Traders are estimating a 62% chance of an additional 50 basis point cut in November, according to the CME FedWatch Facility. This uncertainty may influence investors’ decisions.

Gold also broke one of the record highs in recent days, rising nearly 1% to over $2,700 per ounce. China is reportedly considering injecting $142 billion worth of capital into its banking system and is also working on other stimulus measures.

This news, combined with the positive sentiment in Asian stock markets, caused the Shanghai Composite Index to increase by 3.6%. Thus, the index is poised to have its best week in a decade. US stock index futures are up about 1%.

Bitcoin’s appeal is starting to grow among both retail and institutional investors. According to data from SoSoValue, total daily net flows for BTC ETFs surpassed $100 million for the second consecutive day, marking a five-day streak of positive net flows for the funds. This situation stands out as a factor that increases Bitcoin’s impact on the market.

Retail Bitcoin investors have accumulated 35,000 BTC in the last 30 days, indicating increased participation from smaller investors. This indicates that confidence in the markets has been restored. Newly approved options on BlackRock’s Bitcoin Trust (IBIT) are thought to set the stage for future gains for BTC.

“The approval will increase liquidity and investor participation in the Bitcoin market, marking another step towards broader institutional adoption,” CryptoQuant said. On March 12, 2024, Bitcoin options on CME recorded a new open interest, reaching almost half a billion dollars.

This represents an almost fivefold increase from its maximum level in 2023. All these developments provide important clues about what course Bitcoin and general cryptocurrency markets will follow in the future.