As a seasoned researcher with over two decades of experience in financial markets, I have witnessed numerous market cycles and trends that have shaped the global economy. Having closely followed Bitcoin since its inception, I can confidently say that the current surge in BTC price is not just another bubble but a sign of maturity and acceptance as a legitimate asset class.
Currently, Bitcoin (BTC), the world’s leading cryptocurrency, is demonstrating significant power due to global rate cuts this month. The price of Bitcoin has increased more than 3.5% in the past 24 hours and is now being traded at approximately $65,213.85. With a market capitalization of around $1.288 trillion, it’s evident that Bitcoin is attracting substantial investor attention. Notably, the daily trading volumes have significantly increased by over 50%, indicating strong investor interest.
After the Federal Reserve reduced interest rates by 50 basis points in mid-September, the Chinese central bank, PBoC, also decreased interest rates and injected $140 billion into the economy. This excess money appears to be flowing into Bitcoin as it gears up for one of its best September closings in the past decade. In fact, the last time Bitcoin provided substantial double-digit returns in September was in 2012.
Photo: Bloomberg
Throughout Bitcoin’s journey, I’ve noticed a striking similarity between its performance and broader economic indicators. Recently, Sean McNulty, the Director of Trading at market liquidity provider Arbelos Markets, shared this observation with Bloomberg.
The relationship between Bitcoin and the Federal Reserve’s monetary policy remains the strongest among all central banks. Easing policies from other banks also contribute positively to this connection.
Some market experts predict that the $65,000 price point for Bitcoin might encounter some resistance due to today’s options expiration. Approximately $5.8 billion in Bitcoin options will settle today, with a put-call ratio of 0.64 suggesting that the bullish sentiment is strong during this expiration period. Chris Newhouse, a research director at Cumberland Labs, commented on this matter.
Currently, we’ve reached approximately $65,000 and are cautiously probing higher prices. If we successfully surpass this level and sustain it, it could mark a new phase of price exploration. However, if we fail to break through and rise further, there might be a sudden drop.
According to Santiment’s analysis, it has been since August 1st that the price of Bitcoin (BTC) has climbed above the $65,000 threshold for the first time. The primary reason behind this price increase appears to be continuous accumulation by significant investors, such as whales and sharks. Over the last half-year, wallets containing 10 or more BTC have amassed a total value of approximately $4.08 billion in Bitcoin, helping to ward off any prolonged market declines.
Spot Bitcoin ETF Inflows Pick Up amid BTC Price Surge
On Thursday, 26th September, US Bitcoin ETFs experienced a significant surge of approximately $365 million in investments – their highest daily intake for the month. Over the past six days, these ETFs have consistently attracted funds, indicating that institutional appetite for Bitcoin is growing as we approach the anticipated Q4 bull market.
1) Among all ETFs, the Ark Invest Bitcoin ETF (ARKB) attracted the most funds with an inflow of $113 million, and BlackRock’s IBIT followed closely with $93 million in new investments. Moreover, the trading volume for IBIT reached a massive $1.52 billion.
In response to worldwide interest rate reductions, investors are becoming increasingly optimistic, anticipating that the price of Bitcoin will soar past $100K and potentially even higher in the final quarter (Q4). According to BitMEX CEO Arthur Hayes, a period of heightened volatility could trigger a significant increase in Bitcoin’s value.
Read More
Sorry. No data so far.
2024-09-27 10:53