The ongoing shift in macroeconomic outlook catalyzed by rate cuts in several major jurisdictions has bolstered a bullish outlook for Bitcoin and the entire crypto space.
After dropping to $65K yesterday, Bitcoin BTC $83 549 24h volatility: 0.9% Market cap: $1.66 T Vol. 24h: $56.13 B price rebounded above $67K earlier on Thursday, October 24. The flagship coin is attempting to regain bullish momentum in the hourly time frame after experiencing heightened resistance at about $69K in the past two weeks.
Furthermore, Bitcoin price has continuously made higher highs and higher lows, a characteristic of a rising trend, since the August 5 crypto market crash.
From a technical standpoint, Bitcoin price could soon enter its parabolic rally phase amid heightened speculation fueled by institutional investors. Based on historical data, Bitcoin price tends to gain bullish momentum after consolidating for more than 30 weeks in a row, which has already happened since March.
In case the BTC price consistently closes below the established support level of around $60K in the near term, the bearish sentiment will be palpable in the subsequent weeks.
In the long haul, the Bitcoin halving impact, amid the mainstream adoption of digital assets, is expected to yield bullish sentiment akin to previous bull markets.
Whale Investors on a Bitcoin (BTC) Buying Spree
The demand for Bitcoin among institutional investors has skyrocketed in the past few months, compared to any other period of its existence. Both new whales and long-term investors have been accumulating more coins to hedge against macroeconomic uncertainties.
Never in the history of #Bitcoin have we seen institutions and whales buying $BTC this aggressively pic.twitter.com/5VN05RUZ4T
— Quinten | 048.eth (@QuintenFrancois) October 23, 2024
In the last week, the overall supply of Bitcoin on centralized exchanges declined by over 41K, thus falling to a new multi-year low of about 2.39 million units.
The notable decline in CEX Bitcoin supply can majorly be attributed to the notable purchases made by the US spot BTC ETF issuers. On Wednesday, BlackRock’s IBIT led with $317 million in cash inflows, thus currently holding about $26.24 billion in assets under management (AUM).
Market Picture
Bitcoin price has been attempting to mirror the same bullish sentiment as Gold and major stock indexes in the recent past. Ultimately, the ongoing shift in macroeconomic outlook, fueled by rate cuts in several major jurisdictions, will propel Bitcoin and the entire crypto industry in bullish sentiment.
On Wednesday, comments from the Beige Book signaled a potential Fed rate cut in early November after the US election. The US Fed is likely to cut its benchmark interest rate to bolster the country’s economic outlook and compete with other nations that have already initiated rate cuts led by Canada, China, and European countries.
Meanwhile, most experts believe that Bitcoin price will continue to perform well in the long haul irrespective of the next president of the United States. However, it will be key to note the next Chair of SEC, and US treasury, among other related agencies.
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