đ„Bitcoin price dropped to $62,705 in the early morning of September 26, temporarily giving investors hope after being rejected for the third time at the $64,000 resistance level in just four days. However, the situation changed when the US stock market opened, pushing the S&P 500 index to a new record high. Bitcoin then rose more than 3%, reclaiming the $65,000 level.
đSome market analysts say Bitcoin's path to $70,000 has been bolstered by macroeconomic trends, including lower interest rates in the U.S. and renewed interest from long-term institutional investors.
đ„Bitcoin Looks Less Risky
đAdding to investors' risk appetite was the third estimate of US gross domestic product (GDP) growth for the second quarter, which came in at 3%. This supported expectations of a 2.9% annual growth rate for the third quarter. In addition, China's newly announced economic stimulus measures led to the biggest weekly gain in the CSI 300 stock index in more than a decade.
đHowever, the most significant recent development that has impacted Bitcoinâs rally is the $242 million inflow into Bitcoin ETFs in just two days. Investors have been skeptical that institutional demand will pick up, especially after BlackRockâs iShares Bitcoin Trust ETF has attracted just $5 million in inflows since its launch on August 27.
đBitcoinâs move above $65,000 was driven by favorable macroeconomic trends, rising institutional demand, and a strong recovery in the tech sector. Large inflows into Bitcoin ETFs indicate a shift in investor sentiment and a reduction in perceived risk, which could lay the groundwork for a Bitcoin rally toward $70,000.
đ„Bitcoin Daily Close Above $65,000 Is âPivotalâ to Starting an Uptrend: Kraken
đAccording to a recent report published by Kraken on September 26, Bitcoin (BTC) is currently testing a key resistance level at $65,000, which is considered âpivotalâ for market sentiment.
đThe report notes that Bitcoin has reclaimed all of its major moving averages, which could lead to further upside momentum in the coming days. The report also says that recent price action has shown tight consolidation near the $65,000 region, with trading patterns indicating an uncertain state of the market at this key level.
