Key Points
- Bitcoin (BTC) price surged over 3% in the past 24 hours, reaching a high of roughly $61,242.
- The total crypto market cap increased around 1% in the same period, totaling about $2.17 trillion.
Bitcoin’s price showed a significant increase of over 3% in the last 24 hours, hitting a high of approximately $61,242, before settling around $60.4k during the mid-London trading session. On the daily chart, the leading cryptocurrency closed above the 50 Moving Average (MA), indicating a return of bullish momentum.
This surge resulted in the total crypto market cap rising by about 1% in the past 24 hours to hover around $2.17 trillion. The sudden rise in crypto, amidst increased volatility, led to forced liquidations exceeding $135 million in the past 24 hours, primarily affecting short traders.
Factors Driving Bitcoin’s Price Increase
The recent rally of Bitcoin’s price above $61K has been building for the past two months. From a technical perspective, despite the death cross between the 50 and 200-day Moving Averages (MAs), Bitcoin’s price has been forming a reversal pattern in the daily and weekly time frames.
Additionally, the leading cryptocurrency has established a strong support zone above $54K, resulting in a triple bottom coupled with a rising divergence on the daily Relative Strength Index (RSI).
From a fundamental perspective, Bitcoin’s price has been outperforming the altcoin market, as evidenced by its increasing dominance, which hit a multi-year high of about 58.46% earlier. The demand for Bitcoin among large investors has remained relatively higher compared to the altcoin industry, led by Ethereum. According to data analysis provided by CryptoQuant, Bitcoin custody wallets have seen six days of accumulation, further strengthening the overall bullish outlook.
Meanwhile, United States spot Bitcoin ETFs registered a net cash inflow of about $186 million on Tuesday. Notably, none of the issuers of the US spot Bitcoin ETFs recorded a net cash outflow on Tuesday, even Grayscale’s GBTC. While BlackRock’s IBIT did not register a net cash inflow on Tuesday, Fidelity’s FBTC, Bitwise BITB, and ARK 21Shares Bitcoin ETF (ARKB) all reported more than $42 million in cash inflows on Tuesday.
The Bigger Context
The cryptocurrency industry has gradually gained bullish momentum as Gold rallied to its all-time high in the past few days. The ongoing global economic shift is expected to be escalated by today’s Federal Funds Rate and the FOMC statement.
There is a high likelihood of the Federal Reserve initiating the first interest-rate cut later today for the first time in four years. If the Fed initiates a rate cut today, it will provide investors with what is perceived as ‘easy money’, and in turn, help increase the overall crypto liquidity in the near term.
