Bitcoin (BTC) hit $63,000 on September 19 as the New York market opened, as BTC's price rose in tandem with rising stocks.

BTC price strengthens, along with booming stocks

Data from TradingView shows a new three-week high near $63,500 on Bitstamp.

The excitement over long-term US fiscal policy continued after the US Federal Reserve made a major 0.5% interest rate cut the day before.

Stocks and gold are both up, the S&P 500 is approaching a new record high, while BTC/USD is finally starting to approach a key resistance level near its record high from March.

Trading firm QCP Capital wrote in a recent announcement to its Telegram channel subscribers:

“The 2Y/10Y US Treasury spread, a recession indicator, has been inverted since July 2022 but has recently steepened by +8bps, reflecting market optimism and a shift to risk assets.”

QCP notes that the Fed is expected to make further cuts, two of which are expected to come before the end of the year.

“The S&P 500 and Nasdaq are up more than 20% this year alone,” trading resource The Kobeissi Letter continued in today’s X update.

“Since September 6, the S&P 500 has added $3 trillion to its market capitalization. Truly remarkable.”

Bitcoin traders were unsurprisingly bullish on the outcome.

Popular trader and social media commentator Byzantine General described the spot market as “strong,” while crypto trader, analyst and entrepreneur Michaël van de Poppe said BTC/USD is “doing very well.

“I think we’re going to consolidate before we move higher, but basically, since Powell started speaking, the market has been rising. Nothing more. There’s just a lot of room to buy the dips.”

The latest data from tracking resource CoinGlass shows dense resistance just below $64,000 – a popular post-Fed BTC price target.

Institutions “No Longer Strongly Short Bitcoin”

Amid mixed flows for U.S. spot Bitcoin exchange-traded funds (ETFs) over the past week, new data reveals a shift in sentiment among institutions.

Data posted on X by Ki Young Ju, founder of Chain analytics platform CryptoQuant, shows a significant slowdown in the level of institutional shorting of BTC.

“Institutions are no longer aggressively shorting Bitcoin,” he commented alongside a chart of net positions of BTC futures on CME Group.

“CME futures net position has fallen 75% over the past five months.”

Meanwhile, US spot ETFs saw negative net inflows on September 18, UK-based investment firm Farside Investors confirmed, in contrast to the previous day’s positive figure of $187 million.

This article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research when making a decision.

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