After the Fed released FOMC minutes on Wednesday that signaled a possible rate cut next month, Bitcoin’s (BTC) price surged 2 percent to reach a daily high of about $61,830. The flagship coin, however, has experienced a significant resistance level around the 50-day Moving Average (MA).
Nonetheless, the daily Relative Strength Index (RSI) has since rallied above 50 percent, suggesting the re-emerging bullish momentum. Moreover, Gold price reached a new all-time high, of above $2,500 an ounce, amid the ongoing rebound of the major global stock indexes led by Japan’s Nikkei 225.
Rising Demand from Institutional Investors
Led by BlackRock’s IBIT, the US-based spot Bitcoin ETFs have registered more than $210 million in cash inflows over the past two weeks. On Wednesday, the US spot Bitcoin ETFs reported a net cash inflow of about $40 million, thus the total assets under management rising to around $55.96 billion.
According to an on-chain data analysis by Coinglass, the supply of Bitcoin in centralized exchanges has continued to drop in the past five months despite the bearish outlook.
More institutional investors—led by Metaplanet Inc., MicroStrategy, and Marathon Digital, among others—have accelerated their accumulation pace in recent years.
What Next?
From a technical standpoint, Bitcoin price is at a crucial point that could yield a major bull run in the near term or further capitulation. The ongoing demand from altcoins, as shown by the recent approval of spot Ether and Solana ETFs in the Americas, could force a reversal in the Bitcoin dominance
Crypto analyst Benjamin Cowen believes the flagship coin is on course for a parabolic ride in the coming months, compared to previous bull cycles.
