From $49K to $60K: The institutional confidence driving Bitcoin's next big move #CryptoMarketMoves #Btctopcrypto
Despite trading sideways to wrap up August, Bitcoin investors are optimistic for a solid back half of 2024.
Scott Melker, host of The Wolf of All Streets podcast, discussed Bitcoin's recent price action with Austin Arnold from Altcoin Daily. As Bitcoin bounced back from a dip below $50,000 to climb above $60,000, the conversation turned to what might be next for the leading cryptocurrency.
Arnold emphasized the importance of strong fundamentals, particularly the large inflows into Bitcoin ETFs from institutions like BlackRock and Fidelity. "These institutions are accumulating Bitcoin for the long run," Arnold noted, highlighting their focus on long-term value rather than short-term price fluctuations.
He also addressed the recent dip to $49,000, explaining it was mostly due to the Japan yen carry trade, which drained liquidity from the markets. Despite this, Arnold observed, "Institutions weren’t scared of the dip; they bought more during the dip," signaling their continued confidence in Bitcoin's future.
Looking ahead, Arnold shared his optimism, particularly regarding the upcoming Federal Reserve meeting. "I think we’ll see a little buy the rumor into that event and then sell the news," he said, suggesting that markets might rise if rate cuts are larger than expected.
Arnold believes the combination of Bitcoin’s recent halving and increasing institutional demand will likely push prices higher over time. While the short-term is fairly unpredictable, he remains bullish.
Bitcoin has advanced more than 30% on the year, compared to a near 20% rise in the S&P 500 over the same time period.
