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In summary
- On Tuesday morning, Bitcoin surged above $57,000 as US BTC ETFs returned to positive flows after an 8-day losing streak.
- Solana (SOL) and Toncoin (TON) also saw notable gains, up 4% and 4.4% respectively.
- Ethereum (ETH) is trading at $2,360, up 1.5%, although it has fallen 12% over the past two weeks.
Bitcoin surged above $57,000 on Tuesday morning as U.S. BTC exchange-traded funds (ETFs) returned to positive flows after an 8-day losing streak. However, experts continue to warn of “few” catalysts for a sustained price rally in the near term.
The broader market is also seeing a recovery, with Solana (SOL) and Toncoin (TON) also posting notable gains, up 4% and 4.4% respectively.
Ethereum (ETH), the second-largest Cryptocurrency by market cap, is trading at $2,360, up 1.5%, although it has fallen 12% over the past two weeks.
Bitcoin spot ETFs recorded a total net inflow of $28.7196 million on Sept. 9. Fidelity’s (FBTC) led the charge with a substantial inflow of $28.5 million, while Grayscale’s (GBTC) saw an outflow of $22.7 million, according to data from SoSo Value.
The Ethereum ETF landscape presents a more mixed picture.
Grayscale’s ETF (ETHE) reported significant outflows of $22.6 million, contributing to a total net outflow of $5.1 million for spot Ethereum ETFs. That marks the fifth consecutive day of net outflows. However, other funds showed positive momentum, with the Fidelity Ethereum Fund (FETH) and the Bitwise Ethereum ETF (ETHW) recording inflows of $7.6 million and $1.8 million respectively, according to data from Soso Value.
Vishal Sacheendran, Head of Regional Markets at Binance, told Decrypt that despite the fluctuations, Bitcoin’s ability to recover demonstrates its enduring strength and continued confidence in its long-term potential.
“While past performance is no guarantee of future results, October has historically been a strong month for Bitcoin,” he said, “with positive returns in 9 of the past 11 years and an average gain of 22.9%.”
In a note sent to Decrypt, Illia Otychenko, Market Research Analyst at CEX.IO, said that Bitcoin price bounced off the 50-week Simple Moving Average (SMA), which acted as a key support during its drop in early August, and is now attempting to stay above the 0.382 Fibonacci retracement level.
The Fibonacci retracement is a technical analysis tool that uses key ratios to identify potential support and resistance levels on price charts, with the 38.2% level often considered significant by traders.
Otychenko also pointed out a potentially bullish indicator, stating that: “Despite recent price declines, the NVT (Network Value to Transactions) Golden Cross indicator is showing higher lows, while Bitcoin price is making lower lows. This divergence indicates a potential bullish signal, suggesting that underlying network activity is strengthening.”
The NVT Golden Cross indicator compares the value of the Bitcoin network to its transaction volume, with rising values potentially signaling bullish sentiment in the market.
Meanwhile, addressing the broader market context, Greg Cipolaro, Global Head of Research at NYDIG, said, “Unfortunately, potential near-term upcoming catalysts for Bitcoin are few and far between at the moment. Most catalysts have to do with macroeconomic data (inflation, unemployment, GDP growth) or monetary decisions (FOMC interest rate decisions) and very few are specific to cryptocurrencies or Bitcoin.”
Sacheendran added that as the US election approaches, heightened attention and political debate could drive significant shifts in market sentiment, which will also present a unique opportunity for the cryptocurrency industry to adapt, innovate and align with emerging regulatory frameworks.
Edited by Stacy Elliott.
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