Bitcoin Price Rebounds Above Crucial Support Levels amid Rising Demand from US Spot BTC ETFs

Coinspeaker
Bitcoin Price Rebounds Above Crucial Support Levels amid Rising Demand from US Spot BTC ETFs

Bitcoin (BTC) price rallied over 4 percent in the past 24 hours to reach a daily high of about $57,896 before retracing towards $56,870 on Tuesday during the mid-European session. Although the flagship coin is not out of the woods yet, the recent rebound above $56K has signaled a potential reversal in the near term.

Moreover, Bitcoin price has been retesting the lower border of a falling weekly channel in the past few days.

Additionally, the fear of further crypto capitulation has gradually decreased in the past few days. Bitcoin’s fear and greed index rallied above 30 earlier today as the underlying value spiked above $56k.

The United States-based spot Bitcoin ETFs have been bleeding out in the past two weeks, leading to the recent BTC price drop towards $52k. However, the eight-day losing streak ended on Monday after the US spot Bitcoin ETFs registered a net cash inflow of about $28.72 million.

On Monday, Fidelity’s FBTC, Bitwise BITB, and ARK 21Shares Bitcoin ETF (ARKB) reported a total cash inflow of about $28.6 M, $21.99M, and $6.81 million respectively. However, BlackRock’s IBIT and Grayscale’s GBTC closed the day with a total cash outflow of about $9 million and $22.76 million respectively.

As a result, the US spot Bitcoin ETFs have total assets under management of about $51.31 billion.

The cash inflow into Hong Kong spot Bitcoin ETFs has significantly decreased to almost net zero in the last few weeks, signaling low demand from Asian institutional investors. Nevertheless, Japanese Metaplanet Inc has continued to accumulate more Bitcoins. Earlier today, the company announced that it has added another 38.46 BTCs, thus holding a total of 398.83 units.

The crypto market is expected to enter a bullish phase in the fourth quarter and extend to the first half of 2025. The anticipated interest rate cut in the United States on September 18, ahead of the upcoming general elections, is expected to favor the crypto market.

The bond market is crashing. Do you realize the world economy is based on debt? A bond is debt, and the whole world is floating on it, and this collapse signals deeper economic troubles. While market crashes are visible, banking crashes are hidden and much more dangerous. It’s…

— Robert Kiyosaki (@theRealKiyosaki) September 9, 2024

Furthermore, the US dollar Index has been weakening in the recent past and the trend is expected to continue in the coming quarters. According to serial entrepreneur Robert Kiyosaki, investing in physical assets like gold, Bitcoin, and Bitcoin will help people protect their capital from the crashing bond market in the long haul.

Meanwhile, the mainstream adoption of decentralized financial (DeFi) protocols is expected to trigger the much-anticipated altseason in the near term. Moreover, Bitcoin dominance has been forming a potential reversal pattern in the weekly time frame, which will eventually accelerate the rate of crypto cash rotation to altcoins.

Bitcoin Price Rebounds Above Crucial Support Levels amid Rising Demand from US Spot BTC ETFs