Bitcoin, the digital gold, has taken a breather after its recent rally. After reaching a multi-week peak of around $66.5k last Friday, BTC’s price has faced a cooling off period, dropping over 3% in the past three days. So, what’s going on?
As September comes to a close, Bitcoin has made a significant recovery over the past four weeks, reflecting the ongoing global economic shifts. Following a correction low of about $52.6k earlier this month, Bitcoin’s price has rebounded more than 25% in that time.
Let’s dive deeper into what the future holds for the cryptocurrency.
Despite the decreasing fear of further crypto capitulation over the past three weeks, on-chain data indicates that whale investors, particularly those associated with U.S. spot Bitcoin ETFs, have ramped up their accumulation efforts. Recent market data reveals that U.S. spot Bitcoin ETFs have seen over $1.9 billion in cash flows during this period.
Consequently, Bitcoin’s price has rallied alongside the gold market, spurring investors’ appetite for long positions. However, market analysis from Santiment suggests that the market often reacts contrary to the crowd’s expectations.
As the end of September approaches, traders are bracing for the $8 billion Bitcoin options expiration over the weekend. Historically, Bitcoin’s price tends to experience increased volatility during such significant liquidity events in the options market.
Additionally, on-chain data from CryptoQuant reveals that Bitcoin’s Open Interest market has surged to over $19 billion. Historical trends show that Bitcoin’s price has declined whenever the Open Interest market spikes above $18 billion.
As the global liquidity gradually increases, Bitcoin price is expected to gradually rise in tandem. Furthermore, the upcoming US 2024 general election is expected to be a bullish trigger as it has been in the past.
However, the notable surge of altcoins—led by Ripple’s XRP—may signal the onset of a significant altseason, potentially reversing Bitcoin’s weekly dominance in the market.
Will Bitcoin’s dominance continue, or will altcoins steal the show? Share your insights.
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