Key Points
- Bitcoin’s (BTC) price has bounced back above significant support levels, possibly indicating a near-term reversal.
- The US Spot Bitcoin ETFs have ended their eight-day losing streak, registering a net cash inflow of about $28.72 million.
Bitcoin’s (BTC) price has surged over 4 percent in the past 24 hours, reaching a daily high of approximately $57,896 before falling back to around $56,870 during Tuesday’s mid-European session. The flagship cryptocurrency is not yet completely stable, but the recent bounce above $56K could suggest an imminent reversal.
In the past few days, Bitcoin’s price has been retesting the lower border of a descending weekly channel. The fear of further crypto capitulation has been gradually decreasing. Bitcoin’s fear and greed index rose above 30 earlier today as the base value spiked above $56k.
US Spot Bitcoin ETFs Break Negative Trend
US-based spot Bitcoin ETFs have been in a decline for the past two weeks, contributing to the recent BTC price drop towards $52k. However, this eight-day losing streak ended on Monday when the US spot Bitcoin ETFs recorded a net cash inflow of roughly $28.72 million.
On Monday, Fidelity’s FBTC, Bitwise BITB, and ARK 21Shares Bitcoin ETF (ARKB) reported total cash inflows of about $28.6 M, $21.99M, and $6.81 million respectively. Conversely, BlackRock’s IBIT and Grayscale’s GBTC ended the day with total cash outflows of approximately $9 million and $22.76 million respectively.
As a result, the US spot Bitcoin ETFs now have total assets under management of about $51.31 billion. Cash inflow into Hong Kong spot Bitcoin ETFs has significantly decreased to almost net zero in the last few weeks, indicating low demand from Asian institutional investors. Despite this, Japanese Metaplanet Inc has continued to accumulate more Bitcoins. The company announced earlier today that it has added another 38.46 BTCs, bringing its total holdings to 398.83 units.
Outlook for the Crypto Market
The crypto market is projected to enter a bullish phase in the fourth quarter, extending into the first half of 2025. The expected interest rate cut in the United States on September 18, ahead of the upcoming general elections, is anticipated to favor the crypto market.
The US dollar Index has been weakening recently, and this trend is expected to continue in the coming quarters. Serial entrepreneur Robert Kiyosaki suggests investing in physical assets like gold, Bitcoin, and Bitcoin as a way to protect capital from the collapsing bond market over the long term.
The mainstream adoption of decentralized financial (DeFi) protocols is expected to kickstart the much-anticipated altseason soon. Furthermore, Bitcoin dominance has been forming a potential reversal pattern in the weekly timeframe, which could speed up the rate of crypto cash rotation to altcoins.
