Why Bitcoin Is Experiencing Gains Today? 🐂
There you go, below are the key factors driving Bitcoin's recent price increase:
Inflation Outlook:
The Consumer Price Index (CPI) report showed a 3.7% rise in August, fueling optimism for a pause in Federal Reserve interest rate hikes at the upcoming #FOMC meeting.
Market Sentiment:
Positive sentiment in the market indicates expectations of a Fed interest rate freeze, with CME Group data reinforcing this likelihood, benefiting risk assets like #bitcoin .
Institutional Interest:
Growing institutional interest is evident through filings for Bitcoin ETFs, including from major players like BlackRock, Fidelity, and Franklin Templeton.
Bitcoin Supply Reduction:
The supply of Bitcoin on exchanges has been steadily decreasing, reducing available supply for spot selling and potentially driving up prices.
Short Squeeze Potential:
Reduced supply and market dynamics have led to significant liquidations of short positions, raising the possibility of short squeezes.
Fear & Greed Index:
Despite the price surge, the Bitcoin Fear & Greed Index still signals a cautious "#fear " sentiment among investors, suggesting room for sentiment improvement.
