Bitcoin price recovers to $65K influenced by macroeconomic trends and the rise in tech stocks

- Bitcoin price recovers to $65,000 - Impact of macroeconomic trends and tech stock rally [Unblock Media] Bitcoin price dropped to $62,705 in the early hours of September 26, leading to disappointment as buyers failed to break the $64,000 resistance level for the third time in four days. However, with the opening of the US stock market, the S&P 500 reached an all-time high, which helped Bitcoin recover to $65,000. Bitcoin's price rose by more than 3%, hitting $65,243. Some market analysts believe that the increasing interest from institutional investors and macroeconomic trends have increased the probability of Bitcoin surpassing $70,000. Factors such as US interest rate cuts and record-high housing prices support this outlook. One major reason for Bitcoin's price increase is the tech stock rally and changes in monetary policy that have affected investor sentiment. The tech sector is a major driver of the stock market's rise, with companies like Alibaba, Tesla, Nvidia, Taiwan Semiconductor, and Apple seeing significant gains. Tesla's investment of $1.5 billion in Bitcoin early in 2021 significantly influenced its price increase. Michael Matousek, Head Trader at US Global Investors Inc., stated that the rising demand for AI technology and data center chips could indirectly positively impact Bitcoin's mining efficiency. This could enhance the efficiency of Bitcoin transactions and mining, contributing to the network's stability and scalability. The advancement of AI technology supports Bitcoin's future growth potential. Investment researcher Lyn Alden emphasized that Bitcoin is closely linked to changes in the global money supply (M2). With a sharp increase in M2 money supply between 2020 and 2021, Bitcoin reached all-time high prices. When M2 money supply increases by 20%, Bitcoin prices tend to rise by approximately 83%. This demonstrates Bitcoin's sensitivity to changes in the global money supply. This data is notable as changes in the money supply also impact the stock market. The S&P 500 index shows an 81% correlation with money supply changes, aligning with the positive momentum of the stock market. Bitcoin is reinforcing its position as a hedge against government monetary policies. On September 26, the positive momentum in the US stock market was mainly driven by memory chip supplier Micron. Micron raised its quarterly revenue forecast to $8.9 billion and expects the demand for chips used in AI data centers to increase fivefold by 2025. With the estimated 3% growth rate of the US GDP in the second quarter, investors' risk tolerance has increased. China's new economic stimulus measures also led to a sharp rise in the weekly CSI 300 index. However, the recent development that had the most significant impact on Bitcoin's momentum was the inflow of $242 million into spot Bitcoin ETFs within just two days. This indicates gradually increasing institutional demand. Bitcoin's rise is driven by macroeconomic trends, increasing institutional demand, and the strength of the tech sector. The large inflow into Bitcoin ETFs reflects a shift in investor sentiment and could drive Bitcoin's rally towards $70,000.