Bitcoin’s meteoric rise in the cryptocurrency market has been making waves, with the global crypto market cap surging by 2.2% to reach $2.08 trillion in the past 24 hours. At the forefront of this surge is Bitcoin, trading at $60,281 and showing signs of potential market stability. The driving force behind Bitcoin’s performance has been the increasing interest in Bitcoin-linked products, propelling its price upwards.
One of the key factors contributing to Bitcoin’s rise has been the substantial inflows into spot Bitcoin ETFs. Last week, U.S.-based ETFs saw net inflows of $403 million, with an additional $186.7 million pouring in on September 17, as reported by blockchain analytics platform SpotOnChain. These inflows have pushed the total ETF reserves to $17.3 billion, instilling confidence in the market.
Another contributing factor to Bitcoin’s gains has been the significant liquidation of short positions in the derivatives market. Coinglass data reveals that short traders lost $88 million in the last 24 hours, while long traders faced $52.15 million in losses. These liquidations have bolstered Bitcoin’s recent rally, adding to its upward momentum.
Bitcoin’s price surge mirrors the strength of the U.S. equities market, with the S&P 500 hitting a new all-time high of 5,670.81, up by approximately 20% in 2024. The stock market’s robust performance has further fueled confidence in Bitcoin, driving its price higher.
As investors eagerly await the Federal Open Market Committee (FOMC) meeting scheduled for September 17-18, all eyes are on the U.S. Federal Reserve’s decision regarding rate cuts. With expectations of a 0.5% rate cut, there is a 65% chance of this outcome according to the CME Group’s FedWatch Tool. The market anticipates this move after a series of rate hikes that pushed borrowing costs to their highest level in two decades.
In terms of Bitcoin price analysis, the cryptocurrency recently rebounded from testing a key support level of $57,270, surging above $60,000. To break through its resistance level of $61,725, a positive response to the expected rate cut could be pivotal. Success in this regard could propel Bitcoin towards $65,000, sustaining its bullish trend. However, failure to surpass resistance may lead BTC to revisit lower support levels around $60,000.
Overall, Bitcoin’s performance in the cryptocurrency market continues to captivate investors, with its upward trajectory fueled by spot Bitcoin ETF inflows, short liquidations, and a strong correlation with the stock market’s strength. As the market eagerly awaits the outcome of the FOMC meeting, Bitcoin’s price movements remain closely watched for potential further gains or retracements.