Bitcoin has been showing strong performance in the cryptocurrency market, leading to a market-wide surge. In the past 24 hours, the global crypto market capitalization has grown by 2.2%, reaching $2.08 trillion. Bitcoin itself saw a price jump, trading at $60,281, largely due to rising interest in Bitcoin-linked products, suggesting potential market stability.
Spot Bitcoin ETF Inflows Drive Market
A key factor supporting Bitcoin’s rise has been substantial inflows into spot Bitcoin ETFs. U.S.-based ETFs saw net inflows of $403 million last week, ending on September 13.
The momentum continued with an additional $186.7 million in inflows on September 17, according to blockchain analytics platform SpotOnChain. These inflows pushed the total ETF reserves to $17.3 billion, fueling optimism in the market.
Short Liquidations Add to Bitcoin’s Gains
Data from Coinglass shows a significant liquidation of short positions in the derivatives market. Over the last 24 hours, short traders lost $88 million, while long traders faced $52.15 million in losses. This wave of liquidations helped support Bitcoin’s recent rally.
Bitcoin Mirrors the Stock Market’s Strength
Bitcoin’s price surge parallels the robust performance of U.S. equities. The S&P 500 recently hit a new all-time high of 5,670.81, up by about 20% in 2024. The stock market’s strength has further boosted confidence in Bitcoin.
Eyes on the FOMC Meeting
Attention is now on the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for September 17-18. The market expects the U.S. Federal Reserve to implement rate cuts after a series of rate hikes that brought borrowing costs to their highest level in two decades. According to the CME Group’s FedWatch Tool, there is a 65% chance of a 0.5% rate cut.
Bitcoin Price Analysis
Bitcoin recently bounced back from testing a key support level of $57,270, climbing above $60,000. For Bitcoin to break through its resistance level of $61,725, a favorable response to the expected rate cut could be crucial.
If successful, Bitcoin could surge toward $65,000, maintaining its bullish trend. However, failure to break past resistance could cause BTC to revisit lower support levels of around $60,000.
