Coinspeaker Bitcoin (BTC) Price Signals Bullish Recovery Fueled by Fed Rate Announcement and Institutional Investors’ Demand
Bitcoin BTC $58 509 24h volatility: -0.6% Market cap: $1.16 T Vol. 24h: $28.04 B price has continued to oscillate around $58K since July, after establishing a solid support level of about $54k. The flagship coin has been forming a weekly reversal pattern, characterized by a potential triple bottom coupled with a rising divergence on the Relative Strength Index (RSI). Moreover, BTC price in the weekly time frame has rebounded from the rising logarithmic trend, which began in late 2022 following the collapse of FTX and Alameda Research.
However, there are short-term risks of bearish volatility, which could see the flagship coin drop toward the $54k support level again before rebounding toward its all-time high. The recent death cross between the 50 and 200 Moving Averages (MA) in the daily time frame has continued to weigh heavily on the midterm Bitcoin price recovery.
Nonetheless, the rising Bitcoin dominance and market confidence bolster the long-term bullish sentiment. From the historical data analysis, Bitcoin price tends to rebound in a bullish outlook in October, which has thus been baptized ‘Uptober’.
Rising Bitcoin Demand
The demand for Bitcoin among institutional investors and nation-states has gradually been rising in the recent past, despite the notable capitulation from short-term holders. According to on-chain data analysis, stablecoins issuer Tether minted 1 billion USDT USDT $1.00 24h volatility: -0.2% Market cap: $118.61 B Vol. 24h: $42.66 B in the past 24 hours, signaling rising buying pressure.
In the latest revelation of nation-states holding Bitcoin, the Royal Government of Bhutan has disclosed more than 13k holdings in BTC, worth over $780 million.
The South Asia country joins a growing list of countries piling up Bitcoin’s to fight their respective rising debts. For instance, El Salvador president Nayib Bukele announced on Sunday that the country will run its operations in 2025 without any debt financing plan.
“I announce that this September 30 we will present before the Legislative Assembly for the first time in decades the first fully financed budget, without the need to take a single cent of debt for current spending,” Bukele noted.
Notably, El Salvador has been making a purchase of 1 Bitcoin per day in the past months and currently holds 5,875 BTCs, worth more than $331 million.
Meanwhile, BlackRock’s IBIT led the United States-based spot BTC ETFs with notable cash inflow on Monday, thus outweighing the cash outflows from Grayscale’s GBTC. According to the latest market data, the US spot BTC ETFs registered a net cash inflow of about $12.9 million on Monday.
High Impact Economic News
After years of waiting for inflation to cool off in the United States, the Federal Reserve is expected to cut its first interest rate on Wednesday, September 18.
There is now a 69% chance of a 50 bps interest rate cut at Wednesday's FOMC Meeting 🚨 pic.twitter.com/1TbqHrLyia
— Barchart (@Barchart) September 17, 2024
Based on market sentiments, there is a 69 percent chance that the Federal Reserve will initiate a 50 bps interest rate cut tomorrow. Bitcoin price is expected to respond to such a scenario with a bullish outlook, both in the near term and long term. Moreover, the US dollar index is gradually falling as the BRICS nations continue to ditch American bonds for Gold and Bitcoin.
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Bitcoin (BTC) Price Signals Bullish Recovery Fueled by Fed Rate Announcement and Institutional Investors’ Demand
