Bitcoin Rebounds, Yet Analysts Note Limited Triggers for Major Surge
Bitcoin’s price surged above $57,000 on Tuesday morning, driven by positive flows in U.S. BTC exchange-traded funds following an 8-day negative streak. Despite this, experts remain cautious about the potential for a sustained price rally in the short term.
The broader market is also experiencing a recovery, with Solana (SOL) and Toncoin (TON) showing notable gains of 4% and 4.4% respectively. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently trading at $2,360, marking a 1.5% increase, although it has decreased by 12% over the past two weeks.
On September 9, Spot Bitcoin ETFs recorded a total net inflow of $28.7196 million. Fidelity’s (FBTC) led with a significant inflow of $28.5 million, while Grayscale’s (GBTC) saw an outflow of $22.7 million according to data from SoSo Value.
In contrast, the Ethereum ETF landscape presents a mixed picture. Grayscale’s Ethereum Trust (ETHE) reported significant outflows of $22.6 million, contributing to a total net outflow of $5.1 million for Ethereum spot ETFs. Despite this, other funds like Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (ETHW) recorded inflows of $7.6 million and $1.8 million respectively.
Vishal Sacheendran, Head of Regional Markets at Binance, highlighted Bitcoin’s resilience, stating that its ability to bounce back demonstrates enduring strength and sustained confidence in its long-term potential. He also noted that historically, October has been a strong month for Bitcoin, with positive returns in 9 of the past 11 years.
Illia Otychenko, Market Research Analyst at CEX.IO, pointed out bullish indicators for Bitcoin’s price, including its bounce off the 50-week Simple Moving Average and its attempt to hold above the 0.382 Fibonacci retracement level. Additionally, the NVT Golden Cross indicator suggests a potential bullish signal, indicating strengthening network activity.
Greg Cipolaro, Global Head of Research at NYDIG, highlighted the scarcity of near-term catalysts for Bitcoin, noting that most potential catalysts are macroeconomic rather than crypto-specific. As the U.S. election approaches, increased attention and policy debates could drive significant shifts in market sentiment, offering opportunities for the crypto industry to adapt and align with emerging regulatory frameworks.
