Bitcoin Price Forecast: US Recaptures BTC Dominance Amid Rising ETF Demand

Bitcoin (BTC) is trading bearishly around the $60,700 mark. This dip follows comments from Federal Reserve Chair Jerome Powell, who indicated that upcoming interest rate cuts may not be as aggressive as anticipated following the recent 50-basis-point reduction.

However, BTC’s losses may be short-lived, as rising demand for spot ETFs is boosting U.S. Bitcoin holdings. Additionally, the early release of CZ has sparked optimism for a potential market-wide rally.

U.S. Dominance in Bitcoin Holdings and CZ’s Release Boost Market Confidence

On a positive note, the U.S. is regaining its dominance in Bitcoin (BTC) holdings, according to Ki Young Ju, CEO of CryptoQuant. This resurgence is primarily driven by a growing demand for spot exchange-traded funds (ETFs) linked to Bitcoin.

Ju highlights that the U.S. now holds a larger proportion of Bitcoin compared to other countries, with participation largely limited to established entities.

Moreover, Bitcoin has demonstrated remarkable resilience this year, successfully navigating significant market challenges, including the Mt. Gox incident and substantial sales from Germany, without facing major price drops.

Besides this, the early release of Changpeng Zhao (CZ), the former CEO of Binance, from prison has sparked optimistic sentiments in the market. Ju believes that CZ’s return could potentially lead to a broader market rally.

The U.S. regaining dominance in Bitcoin holdings and the potential market rally from CZ’s early release could boost investor confidence, driving demand and possibly increasing Bitcoin’s price as established entities reinvest and market sentiment improves.

U.S. Bitcoin ETF Inflows and Corporate Interest Boost Investor Confidence

Furthermore, U.S. spot Bitcoin exchange-traded funds (ETFs) are experiencing robust inflows, with $61.3 million added over the past week, marking eight consecutive days of positive growth.

BlackRock’s IBIT led the charge with $72.15 million in inflows, while Fidelity’s FBTC contributed an additional $8.32 million. However, some funds, such as Ark and 21Shares, faced outflows.

In a positive development, Japanese investment firm Metaplanet Inc. increased its Bitcoin holdings by nearly $7 million, raising its total to 506.745 BTC, valued at approximately $32.2 million.

Metaplanet has been actively purchasing Bitcoin after designating it as a strategic reserve asset.

Similarly, speculation is rising around Michael Dell, CEO of Dell Technologies, who sold $1.22 billion worth of company shares. This has led to the conjecture that he might be considering investing in Bitcoin.

Meanwhile, Taiwan’s Financial Supervisory Commission has expanded investment options by allowing professional investors to access foreign virtual asset ETFs, aiming to enhance the competitiveness of Taiwan’s financial market.

Although Taiwan has been cautious about digital assets, this regulatory shift aligns it with other financial centers globally, allowing more investment opportunities while managing risks.

Therefore, the strong inflows into U.S. Bitcoin ETFs and increased corporate interest, like Michael Dell’s stock sales, could enhance investor confidence and demand for Bitcoin. This may increase price momentum as institutional and professional investments in BTC grow.

Bitcoin (BTC/USD) Daily Outlook – October 1, 2024

Bitcoin has broken below its ascending channel support at $61,717, signaling a potential bearish reversal. The next immediate support level lies at $60,058, followed by $58,909. If BTC fails to hold these levels, a deeper correction toward $57,513 is likely.

On the upside, immediate resistance is seen at $63,014, followed by stronger resistance at $64,148 and $65,432. The Relative Strength Index (RSI) is currently at 38.15, indicating bearish momentum.

Meanwhile, the 50-day Exponential Moving Average (EMA) at $63,943 acts as a critical barrier for any recovery attempts.

Key Insights:

Overall, Bitcoin remains under pressure as it trades below key support levels. A rebound above $61,717 is needed to regain bullish sentiment.

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