Key Points
- Bitcoin’s price jumped over 3% in the past day, reaching around $58,424, as it attempts to regain the critical $58K support level.
- The US annual inflation rate dropping to its lowest since March 2021 and increased demand from institutional investors influenced the Bitcoin price surge.
Bitcoin’s price has seen a significant increase of over 3% in the last 24 hours, hitting a daily high of approximately $58,424.
The leading cryptocurrency is striving to reclaim the significant support level of about $58K, in anticipation of a bullish breakout in the fourth quarter.
Market Response to Bitcoin’s Price Surge
The total cryptocurrency market capitalization rose nearly 2% to approximately $2.12 trillion on Thursday, during the early European session, following the Bitcoin surge.
Investors turned their attention to the Bureau of Labor Statistics’ monthly and annual Consumer Price Index (CPI) data after the US presidential debate concluded without any mention of cryptocurrency issues.
The US annual CPI data, which majorly accounts for overall inflation, fell from 2.9% to around 2.5%, its lowest since March 2021.
This decline has led Wall Street analysts to predict that the Federal Reserve might initiate the first interest rate cut next week.
Influence of Institutional Investors and Bitcoin Whales
The Bitcoin price was also significantly influenced by the growing demand from institutional investors, as indicated by the cash flow of spot Bitcoin ETFs.
For instance, Fidelity’s FBTC led the US spot Bitcoin ETFs in cash inflows on Monday and Tuesday, despite a tepid demand on Wednesday.
On-chain data indicates that Bitcoin whales have accelerated their accumulation pace, despite significant sell-offs from Bitcoin miners and short-term holders.
For example, a whale investor withdrew 800 Bitcoins, worth over $45 million, from Binance in the last 24 hours.
Despite Bitcoin’s price rebound above $58K, there is still fear of further cryptocurrency capitulation in September before a bullish rebound in the fourth quarter.
From a technical standpoint, the Bitcoin price could fall towards the support range between $51K and $54K in the near term before rebounding towards a new all-time high.
However, a consistent close below $51K could push Bitcoin towards the next major support level around $46K.
