Even with today\u2019s correction that has pushed its price south by almost three grand, BTC is on the verge of closing its most bullish September in over a decade.<\/p>\n
Here are some of the possible reasons behind this rather unexpected increase during the month, especially its second part, and speculation about whether it could sustain and double down on the rally.<\/p>\n
CryptoQuant\u2019s analysis began by outlining the growing net inflows toward the spot Bitcoin ETFs. As previously reported<\/a>, the BTC-based products attracted over $1 billion in the past week alone and have been in the green for 13 out of the last 15 trading days. This impressive trend began on September 9, shortly after BTC\u2019s price plunge below $53,000 (September 7).<\/p>\n As such, the timing between the two seems like more than just a coincidence.<\/p>\n 2\/ The strong momentum is partly driven by increased demand for the Bitcoin Spot ETF.<\/p>\n Last week saw positive Bitcoin ETF flows, with BlackRock, Fidelity, and Ark reporting combined inflows of $324 million on September 26th, signaling strong demand from U.S. investors. pic.twitter.com\/GGr5xkHjp6<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) September 29, 2024<\/a><\/p>\n\n The monitoring resource further said that some of the investors in the spot Bitcoin ETFs have become Long-Term Holders since the supply they own has passed the 155-day mark. However, this could be the first worrying sign, CryptoQuant added, because \u201csuch shifts often happen in the late stages of a bull market.\u201d<\/p>\n 5\/ Spot Bitcoin ETF holdings are transformed into Long-Term Holder Supply<\/p>\n Spot Bitcoin ETF supply is shifting to Long-Term Holder Supply as coins pass the 155-day mark. While this may seem bullish, such shifts often happen in the late stages of a bull market. pic.twitter.com\/qMPE3ZVMvC<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) September 29, 2024<\/a><\/p>\n\n Due to BTC\u2019s 20% surge from under $53,000 to $63,500 put many investors back in profit. The percentage had shot<\/a> above 90% when the asset\u2019s price hovered above $65,000.<\/p>\n CQ focused more on Short-Term Holders, those holding BTC for 155 days or less. Their average purchases came at a price of $63,000, which means that this level will now act as support. BTC could tumble should the majority of them decide to sell off their stash with minor gains.<\/p>\n The last worrying sign brought up by CryptoQuant involved the futures market, which seems to be overheating. Open Interest has grown to over $19 billion, which could lead to trouble given the 2024 performances during similar occasions.<\/p>\n 4\/ The futures market is showing signs of overheating<\/p>\n Open Interest is around $19.1 billion. Since March 2024, it has surpassed $18.0 billion six times, each leading to a price drop. This marks the seventh occurrence. pic.twitter.com\/NYyJL5PjOt<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) September 29, 2024<\/a><\/p>\n\n When discussing potential reasons behind BTC\u2019s price surge from early September until now, it\u2019s worth mentioning the Federal Reserve, which the CQ\u2019s analysis missed. The US central bank announced on September 18 a key interest rate cut of 0.5%, which was the first in over four years.<\/p>\n BTC\u2019s price stood at $59,000 at the time but soared<\/a> past $66,500 in the next week or so. This is because bitcoin, which is still considered a riskier asset, is among the biggest beneficiaries of lower interest rates as \u201cmoney becomes cheaper.\u201d<\/p>\n Consequently, it would be compelling to follow what the Fed will do next, and its Chair, Jerome Powell, is expected<\/a> to provide more information about the bank\u2019s policy later today, September 30. With even more rate slashes anticipated by the Fed, BTC\u2019s price could indeed resume its bullish rally and even fight for a new all-time high by the end of the year.<\/p>\n The post Here\u2019s Why Bitcoin Gained Over 20% in 3 Weeks: But Can it Go Higher?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Even with today\u2019s correction that has pushed its price south by almost three grand, BTC is on the verge of closing its most bullish September in over a decade. Here are some of the possible reasons behind this rather unexpected increase during the month, especially its second part, and speculation about whether it could sustain […]<\/p>\n","protected":false},"author":0,"featured_media":10394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-10393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/10393"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10393"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/10393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/10394"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Consequences of the Rally<\/h2>\n
Bonus: The Fed<\/h2>\n