As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless market fluctuations and trends that seemed impossible at first glance. However, Bitcoin’s meteoric rise to $64,700 within eight sessions, following a one-month high on Monday, leaves me both intrigued and cautiously optimistic.
On Wednesday, Bitcoin‘s value soared to an astounding $64,700, moving us ever closer to the coveted $65,000 mark. This was Bitcoin’s seventh increase in eight trading days, a streak that began after traders enthusiastically responded to the Federal Reserve’s recent interest rate reduction on Monday, which led to a new one-month high.
On September 24, there was a surge of $136 million in investments into the U.S. market for Bitcoin spot ETFs. Notable funds such as the Fidelity Wise Origin Bitcoin Fund (FBTC) and the iShares Bitcoin Trust (IBIT) helped mitigate losses from the Grayscale Bitcoin Trust (GBTC), indicating a generally optimistic trend in this sector.
On September 24th, the run of money flowing into these investments persisted. Specifically, Bitwise Bitcoin ETF (BITB) saw a net inflow of $17.4 million, while FBTC and BTC each received approximately $16.8 million and $2.9 million respectively.
Significantly, GBTC saw no new investments (net flows), while IBIT received more funds for a second time since late August, potentially due to recent changes in BlackRock’s Bitcoin withdrawal policies. Furthermore, BlackRock acquired 1,547 Bitcoins, which could potentially boost the price of Bitcoin.
Consumer confidence in the U.S. has dipped, with the CB Consumer Confidence Index falling from 105.6 in August to 98.7 in September. This drop raises concerns about consumer spending, which could impact the economy and Bitcoin demand. BTC briefly fell to $62,764 during this period of uncertainty.
In Congress, SEC Chair Gary Gensler faced tough questions regarding cryptocurrency regulation. House Majority Whip Tom Emmer challenged Gensler on the SEC’s actions, highlighting recent support for clearer digital asset rules from Vice President Kamala Harris.
A bi-partisan push towards more transparent rules might increase trust among investors regarding the cryptocurrency market. In the near future, United States housing statistics could indicate a 5.1% decrease in new home sales, which might suggest a less robust economy that could affect consumer feelings and Bitcoin values.
Currently, Bitcoin is holding steady above both its 50-day and 200-day moving averages, which suggests it might aim for the $67,500 level next. But if it falls below $64,000, there could be an increase in downward pressure (bearish sentiment).
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2024-09-25 08:52