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With over 10% gains in September 2024 so far, Bitcoin price has beaten the average 5.6% returns in September over the past decade. Global rate cuts to will benefit Bitcoin amid huge liquidity pump.
Key Notes
Bitcoin whales and large holders have been accumulating, with wallets holding 10+ BTC amassing $4.08 billion.This accumulation, combined with strong institutional inflows into spot Bitcoin ETFs, has helped prevent sustained price drops.US spot Bitcoin ETFs recorded $365 million in inflows on September 26.The world’s largest cryptocurrency Bitcoin BTC $65 562 24h volatility: 2.8% Market cap: $1.30 T Vol. 24h: $39.19 B is showing major strength furled by the global rate cuts this month. Bitcoin price has surged more than 3.5% in the last 24 hours and is currently trading at $65,213.85 with a market cap of $1.288 trillion. Also, the daily trading volumes have surged by 50% showing strong investor interest.
Following the 50 basis points rate cut by the Fed in mid-September, the Chinese central bank PBoC also announced a rate cut with $140 billion in liquidity infusion. This money surplus seems to be coming into Bitcoin as the asset class prepares for the best September closing in the last decade. The last time, BTC gave strong double-digit returns in September was in 2012.
Photo: Bloomberg
In its history, Bitcoin has shown a strong correlation with macro indicators. Sean McNulty, director of trading at liquidity provider Arbelos Markets told Bloomberg:
“Bitcoin’s correlation with monetary policy continues to be highest with respect to the Fed. Other central banks easing certainly helps too.”
Some market analysts also believe that the $65,000 level could prove to be a bit stuck considering Friday’s Bitcoin options expiry. Later today, $5.8 billion worth of Bitcoin options are set to expire with a put call ratio of 0.64 showing that bulls are dominating the expiry. Chris Newhouse, director of research at Cumberland Labs said:
“We’re at $65,000 levels now, and slowly testing higher, either we break out and maintain that as a new level of price discovery, or we don’t break higher and see a sharp decline.”
Crypto analytics platform Santiment reported that this is the first time since August 1st that BTC price has surged past the $65,000 mark. A key factor behind the price surge has been consistent accumulation by large holders, including whales and sharks. Over the past six months, wallets holding 10 or more BTC have amassed a total of $4.08 billion worth of Bitcoin, helping to prevent any sustained downturns in the market.
Spot Bitcoin ETF Inflows Pick Up amid BTC Price Surge
On Thursday, September 26, the US spot Bitcoin ETFs recorded a massive $365 million worth of inflows, the highest single-day flows in September. With this, the ETFs have seen six consecutive days of inflows showing that the institutional interest in Bitcoin is picking up ahead of the Q4 bull run.
The Ark Invest Bitcoin ETF (ARKB) led the club with $113 million in inflows, followed by BlackRock’s IBIT which saw $93 million in inflows. Also, the trading volume for IBIT was at a staggering $1.52 billion.
Following the global rate cuts, investors have turned bullish expecting the BTC price to surge to $100K and beyond in Q4. BitMEX CEO Arthur Hayes stated that a volatility supercycle could lead to a major BTC rally ahead.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
