What is the reason for Bitcoin's strong recovery today?
Specifically, BTC price has increased by more than 4% in the past 24 hours - currently trading around $57,000. US technology stocks also showed slight growth at the end of the session. Let's find out the reasons for BTC's impressive recovery today:
1/ Capital flow into Spot Bitcoin ETFs. Spot BTC ETFs in the US ended a streak of 8 consecutive sessions of net withdrawals with a positive capital flow of $28.6 million in the trading session on September 9.
In general, it can be seen that when the most negative things were shown through the recent negative capital flow, it was also the time when BTC bottomed out. This explains why BTC has recovered nearly 10% from the bottom of $52,500 to $57,000.
2/ US inflation dropped sharply! According to data from ForexFactory, the CPI (y/y) is expected to fall sharply from 2.9% to 2.6% this month. This is a good sign that inflation is well controlled and creates a basis for the FED to lower interest rates on September 19.
3/ Q4 is often profitable for Bitcoin. Although September is the worst performing month for Bitcoin, it is also the beginning of Q4, the strongest growth quarter for $BTC . Therefore, many people have noticed this pattern and bought Bitcoin during the recent correction.
