Analysis: Bitcoin and gold's outperformance is related to increased global liquidity, etc.

Odaily Odaily News Bitcoin has risen 7% in the past five days, breaking through $64,000 for the first time since August 26. Meanwhile, gold has hit a record high more than 30 times this year, breaking through $2,600 an ounce. Analyst James Van Straten said that the outstanding performance of Bitcoin and gold is related to the increase in global liquidity, the expansion of global central bank balance sheets, and the recent interest rate cuts by the Federal Reserve to stimulate investment and economic activity. The Fed's current balance sheet is $7.1 trillion, and although quantitative tightening is still ongoing, the pace has slowed. The reduction in reverse repurchase balances, which currently just exceeded $300 billion, has released liquidity back to the financial system. This has a stimulating effect, increasing the availability of funds for lending, investment, and overall economic activity. From a broader perspective, the global recovery of central bank balance sheets has risen from about $30 trillion since July. This increase in liquidity is particularly stimulating for Bitcoin. In addition, the Fed's 50 basis point rate cut further supported the rise in Bitcoin and gold. (Coindesk)