Bitcoin’s price surged to $64,700 on Wednesday, inching closer to the $65,000 mark. This uptick represents BTC’s seventh gain in eight sessions and follows a recent high achieved after positive market reactions to the Federal Reserve’s interest rate cut.
The U.S. Bitcoin spot ETF market has been buoyed by significant inflows, totaling $136 million as of September 24. This surge includes substantial purchases by major funds, with BlackRock acquiring 1,547 Bitcoins, contributing to the upward pressure on Bitcoin’s price.
In detail, the inflow streak continued with the Bitwise Bitcoin ETF (BITB) reporting net inflows of $17.4 million, and the Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Bitcoin Trust (IBIT) adding $16.8 million and $2.9 million, respectively. Meanwhile, the Grayscale Bitcoin Trust (GBTC) reported no net flows, while IBIT saw its second inflow since late August, likely influenced by new Bitcoin withdrawal requirements from BlackRock.
Consumer confidence in the U.S. has declined, as evidenced by the drop in the CB Consumer Confidence Index from 105.6 in August to 98.7 in September. This decline raises concerns about reduced consumer spending, which could affect the broader economy and, consequently, Bitcoin demand. During this period of uncertainty, Bitcoin briefly dipped to $62,764.
In Washington, SEC Chair Gary Gensler faced scrutiny from Congress over cryptocurrency regulations. House Majority Whip Tom Emmer questioned Gensler about the SEC’s approach, amid increasing calls for clearer digital asset regulations from Vice President Kamala Harris. This bipartisan push for regulatory clarity could enhance investor confidence in the crypto market.
Upcoming U.S. housing data is projected to show a 5.1% decrease in new home sales, potentially signaling economic weakness that could influence consumer sentiment and Bitcoin prices. As Bitcoin maintains its position well above the 50-day and 200-day moving averages, it might soon test the $67,500 level. However, a decline below $64,000 could trigger bearish pressure.
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