Bitcoin gains 5.50% to $63,600, extending the dynamic growth from yesterday. Positive sentiment is returning to the cryptocurrency market, fueled by hopes of a soft landing for the U.S. economy.
The direct catalyst for the rise was, of course, yesterday's dovish stance by the Fed. We are currently witnessing a rotation of capital into riskier assets such as cryptocurrencies, Big Tech, and small-cap companies in the US2000 index. These positive developments coincide with the end of what is typically the "most boring" month of the year—September.
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In the first half of the month, market liquidity was exceptionally low, extending the summer break. However, we are now seeing a gradual return of capital, and with the Fed's rate cuts in the U.S., this trend is likely to continue.
The cyclical nature of the Bitcoin market suggests that we are still early in the cycle, considering the most recent halving. However, the most important factors currently remain the hard data from the U.S. economy and the Fed's communication.
Inflows into Bitcoin ETFs slowed slightly yesterday. However, this is likely related to the declines before the FOMC decision was announced. Today's market gains should also show positive ETF inflows tomorrow (when we get the data).
Bitcoin (D1)
Bitcoin is gaining strongly above $63,000. If the uptrend continues, the next resistance level is around $64,500-$65,500. On the other hand, in the event of a correction, the levels to watch are $61,000 and $60,000.
Source: xStation 5
