The possibility of the US Fed cutting its benchmark interest rate next week has increased, thus rejuvenating bullish sentiments for Bitcoin and the entire altcoin industry.
Bitcoin BTC $85 029 24h volatility: 3.1% Market cap: $1.69 T Vol. 24h: $29.67 B price rallied over 3 percent in the past 24 hours to reach a daily high of about $58,424. The flagship coin is attempting to regain the crucial support level of around $58K in preparation for an anticipated bullish breakout during the fourth quarter. Furthermore, Bitcoin price has established a solid support level of around $54K, as the daily Relative Strength Index (RSI) continues to form a bullish divergence on a potential triple bottom.
Following today’s Bitcoin pump, the total crypto market cap rallied nearly 2 percent to hover about $2.12 trillion on Thursday, during the early European session.
Top Reasons Bitcoin Price Pumped above $58K Today
As the US presidential debate between Donald Trump and Kamala Harris concluded without the mention of crypto issues, investors quickly turned to the Bureau of Labor Statistics to release the monthly and annual Consumer Price Index (CPI). Furthermore, yesterday’s CPI data will play a crucial role in next week’s decision by the Fed on the next economic shift.
Notably, the US CPI annual data, which largely accounts for the overall inflation, dropped from 2.9 percent to about 2.5 percent, the lowest since March 2021. As a result, Wall Street analysts expect the Fed to initiate the first interest rate cut next week. However, the Fed commissioners will also be considering today’s unemployment claims and the PPI data.
Bitcoin price was also heavily influenced in the past 24 hours by the recent rising demand from institutional investors as shown by the spot BTC ETFs cash flow. On Monday and Tuesday, Fidelity’s FBTC led the US spot BTC ETFs in cash inflows before tepid demand on Wednesday.
According to the latest market data, the US spot Bitcoin ETFs registered a net cash outflow of about $44 million on Wednesday, led by ARK 21Shares Bitcoin ETF (ARKB) which reported a net cash outflow of about $54 million.
🐳 Bitcoin has reached as high as $58K today, with sentiment among retail traders beginning to look a bit more positive. Wallets with <1 BTC now hold their highest ratio of supply in 7 months.
However, an ideal setup for crypto to rebound back to all-time high levels would… pic.twitter.com/riPbS2W9qz
— Santiment (@santimentfeed) September 10, 2024
Meanwhile, on-chain data shows that Bitcoin whales have accelerated their accumulation pace, despite the notable sell-offs from BTC miners and short-term holders. For instance, a whale investor withdrew 800 Bitcoins, with over $45 million, from Binance in the last 24 hours.
What Next?
Despite the recent Bitcoin price rebound above $58K, the fear of further crypto capitulation in September before a bullish rebound in the fourth quarter is still evident. Bitcoin’s fear and greed index dropped from 37 percent to around 31 percent amid the BTC price rebound.
From a technical standpoint, Bitcoin price could drop towards the support range between $51K and $54K in the near term before rebounding towards a new all-time high.
However, a consistent close below $51K will push the flagship coin toward the next major support level around $46k.
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