Bitcoin Market Update: October 1, 2024
Current Bitcoin Trends
Bitcoin (BTC) is experiencing a bearish trend, currently trading around the $60,700 level. This downturn follows remarks from Federal Reserve Chair Jerome Powell, who suggested that future interest rate cuts may be less aggressive than expected after the recent 50-basis-point reduction.
Despite this dip, BTC’s downturn could be temporary. Increased demand for spot ETFs is leading to a rise in U.S. Bitcoin holdings. Additionally, the early release of Changpeng Zhao (CZ), former CEO of Binance, has instilled optimism for a potential market-wide rally.
U.S. Dominance in Bitcoin Holdings and CZ’s Release Boost Market Confidence
On a positive note, the U.S. is reclaiming its dominance in Bitcoin holdings, as noted by Ki Young Ju, CEO of CryptoQuant. This resurgence is primarily fueled by a growing demand for spot exchange-traded funds (ETFs) associated with Bitcoin.
Ju points out that the U.S. now possesses a larger share of Bitcoin compared to other nations, with participation mainly from established entities. Moreover, Bitcoin has shown remarkable resilience this year, successfully overcoming significant market challenges, such as the Mt. Gox incident and large-scale sales from Germany, without experiencing major price declines.
Additionally, the early release of Changpeng Zhao (CZ) from prison has generated positive sentiment in the market. Ju believes that CZ’s return may trigger a broader market rally. The combination of the U.S. regaining dominance in Bitcoin holdings and the potential for a rally following CZ’s release could enhance investor confidence, driving up demand and potentially increasing Bitcoin’s price as established entities reinvest.
U.S. Bitcoin ETF Inflows and Corporate Interest Boost Investor Confidence
In recent weeks, U.S. spot Bitcoin exchange-traded funds (ETFs) have seen substantial inflows, adding $61.3 million over the past week and marking eight consecutive days of growth. BlackRock’s IBIT led the way with $72.15 million in inflows, while Fidelity’s FBTC contributed $8.32 million. However, some funds, like Ark and 21Shares, faced outflows.
A noteworthy development occurred when Japanese investment firm Metaplanet Inc. increased its Bitcoin holdings by nearly $7 million, raising its total to 506.745 BTC, valued at approximately $32.2 million. Metaplanet has been actively acquiring Bitcoin, designating it as a strategic reserve asset.
Moreover, speculation is growing around Michael Dell, CEO of Dell Technologies, who recently sold $1.22 billion worth of company shares. This has led to conjectures that he may consider investing in Bitcoin. Meanwhile, Taiwan’s Financial Supervisory Commission has broadened investment options, allowing professional investors to access foreign virtual asset ETFs to enhance the competitiveness of Taiwan’s financial market.
Although Taiwan has approached digital assets with caution, this regulatory shift aligns it with other global financial centers, creating more investment opportunities while managing risks. Consequently, strong inflows into U.S. Bitcoin ETFs and rising corporate interest could bolster investor confidence and increase demand for Bitcoin, potentially leading to price momentum as institutional and professional investments grow.
Bitcoin (BTC/USD) Daily Outlook – October 1, 2024
Bitcoin has fallen below its ascending channel support at $61,717, indicating a potential bearish reversal. The next immediate support level is at $60,058, followed by $58,909. Should BTC fail to maintain these levels, a deeper correction toward $57,513 is likely.
Conversely, immediate resistance is present at $63,014, with stronger resistance levels at $64,148 and $65,432. The Relative Strength Index (RSI) currently sits at 38.15, reflecting bearish momentum. The 50-day Exponential Moving Average (EMA) at $63,943 serves as a significant barrier for recovery attempts.
Key Insights:
- Immediate Support at $60,058: A breach below could lead to further declines.
- RSI at 38.15: Indicates weakening momentum and heightened selling pressure.
- 50-EMA at $63,943: A crucial resistance level for potential bullish reversals.
Overall, Bitcoin remains under pressure as it trades below essential support levels. A rebound above $61,717 is required to restore bullish sentiment.
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