Key Takeaways:
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The 44,000 September BTC removal reduced the available supply, which removed the potential short-term sale pressure.
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The US listed area added $ 2.2 billion, delivering a continuing daily demand that far beyond the supply of mine.
Bitcoin (Btc) has been exchanged with a narrow 2.3% range since Friday while investors are awaiting the Federal Reserve’s interest rate decision on Wednesday. While the immediate impact of an interest rate on bitcoin remains uncertain, three independent factors support additional acquisitions on BTC prices.
BTC’s sharp decline held in the exchanges has been critical for the development of short -term prices. Glassnode estimates a net withdrawal of 44,000 BTC in September alone, reversing high deposit activity from July. With fewer coins that are easy to use, immediate liquidity is lighter, which may limit short -term sales pressure near the current price level of $ 116,000.
Reduced BTC supply, Growing Demand of Bitcoin ETF
Some argue that the 2.96 million BTC still held in exchanges is sufficient to obtain the purchase volume. However, this view does not look at the fact that a large portion of coins is not offered in order books. Many clients maintain bitcoin deposits in exchanges because of Concerns about self -custody or to benefit from features such as yield opportunities or reduced fees.
Further support of the $ 115,000 mark came from continuous accumulation by spot bitcoin exchange-traded funds (ETF). This trend has helped restore investor confidence after 11% of gold release since August. The US listed in Bitcoin ETF recorded $ 2.2 billion Net inflows Between Wednesday and Monday, which represents the sun -day -to -day purchase more than 10 times greater than the value of the new bitcoin mined each day.
Eric Trump’s CNBC interview On Tuesday drawing attention to the unique features of Bitcoin. The son of US president Donald Trump was personally invested as co-founder of Bitcoin Mining and Treasury Management firm American Bitcoin (ABTC). Eric said Bitcoin is the “greatest possession of our time,” which describes it as a modern version of gold and an effective fence against weakness in the real estate sector.
Bitcoin may not react to interest rate cuts
Bond markets priced at a 96% chance that the fed was Trim rates at 4.25% from the current 4.5%. This suggests that Bitcoin can react moderately on Wednesday’s announcement. Meeting statements from Fed Chair Jerome Powell will be more decisive in signing if the rates will continue to fall. If inflation remains a significant risk, the trajectory of Bitcoin to $ 120,000 can face resistance.
However, a new financial signal has emerged this week that can be directed to deeper stress in the markets. On Monday, the US banks borrowed $ 1.5 billion from the Fed repo’s standing facility, a step by the Reuters said reflecting the “tightness of responding to funding obligations.” Overnight lending rates also climbed 4.42% on Friday, which marked the highest reading in two months.
This uncertainty provoked a climb to gold prices, which hit a full time on Tuesday. Regardless of the Fed’s exact decision on interest rates, Bitcoin can rally by $ 120,000 while demand strengthens ETF spots, Corporate Reserve StrategiesAnd its role as an independent fence – an advantage strengthened by Eric Trump’s statements.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
