The Fed’s rate cut prospects add uncertainty to cryptocurrency trends.
Bitcoin $111,650, despite starting September with a dip to $107,256, has changed its direction upward. While altcoins have not yet reached desired peaks, stable decline scenarios for BTC are not gaining traction. What’s the latest on ETF flows, and what does the current state of cryptocurrencies tell us?
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Even though the $108,500 support point was breached, BTC continues to protect this crucial area. The recovery following the brief violation has yet to stretch to the $112,500 support. The stable rise scenario in the BTC graph could proceed with reclaiming the $112,500 and $118,000 thresholds.
It’s been twenty days since the ATH test above $124,000, and during this time, BTC has been making lower peaks, which is not a positive signal. Bulls need to climb back above the $112,500-$113,500 range to fully end this wave of selling.
The outlook for BTC in the ETF channel has started to improve, with a net inflow of $332 million seen yesterday. This is positive following Friday’s $126.7 million outflow. Institutional investors taking advantage of lower prices indicates that risk appetite persists.
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In stock markets, we saw a bit of recovery with Alphabet’s earnings reports. Gold reached a new all-time high. Nasdaq 100 futures increased by 0.7% as Google shares rose 6% in pre-market trading. Nvidia is putting an end to its months-long volatile trend with a decline.
The rise in gold prices coincides with the Fed’s anticipated rate cut decision in its upcoming meeting. Although this is a positive development for cryptocurrencies, its full impact is yet to be observed. The Fed’s likelihood of making a 25bp cut in September is over 90% according to FedWatch.
Things aren’t going great for Ethereum $4,376. The ongoing weakness in altcoins is fundamentally due to this. While BTC rebounded after Friday’s selling, ETH ETFs saw a further net outflow of $135 million yesterday. Although this isn’t terrible given the hundreds of millions of dollars in net inflows seen in recent days, ETH’s temporary abandonment of its ATH journey and BTC’s failure to rally might suggest September won’t be favorable for cryptocurrencies.
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