- BTC rises to 114k, ETH and SOL jump 2.5%
- Fed rate cut expectations boost BTC
- PPI unexpectedly fell, and CPI inflation is in focus
- Sharks (10-1000 BTC holders) amass 3.65 million BTC
- BTC technical analysis
has risen to 114k, trading at levels last seen over 2 weeks ago. The crypto market is also moving higher, supported by interest rate cut expectations, sharks, as well as institutional demand, and record highs on the Nasdaq.
Bitcoin trades at 1.4% over the past 24 hours, whilst is up 2.5% above 4400, and has risen above 225. The wider cryptocurrency market capitalization has increased to $3.91 trillion, up 0.5%.
Sentiment analysis shows signs of sentiment improving. The fear and greed index has risen to 54, up from 4 yesterday, just a few days earlier.
Fed Rate Cut Expectations Lift Bitcoin
The cryptocurrency sector is rising amid expectations that the Federal Reserve will cut interest rates at the meeting next week. Softer than expected US reports, combined with a severe downward revision of 911,000 jobs to the payroll benchmark through March, point to a jobs market that is showing signs of cracking.
inflation fell for the first time since April, easing some inflation worries. Attention is now turning to US data for further clues on the inflationary impact of Trump’s tariffs on the US economy.
Will CPI Raise 50 bps Rate Cut Hopes?
is expected to rise 2.9% YoY in August, up from 2.7%. Hotter than expected inflation is not likely to deter the Fed from cutting rates on September 17, given the weakness in the jobs market. However, cooler-than-expected CPI data could raise expectations of a larger 50-basis-point cut by the FOMC next week.
Risk assets tend to perform better in lower interest rate environments. The more favourable macro backdrop has also helped U.S. stocks trade at record highs. The trades just shy of 24,000, and Gold also hovers around record highs, which bodes well for the outlook for BTC.
Sharks’ Record Accumulation
Sharks, those accounts that hold between 100 and 1000 BTC, have accumulated a record 3.65 million BTC according to Glassnode data. This cohort has added approximately 65,000 BTC to their holdings over the past seven days, accelerating purchases and adding approximately 93,000 over the past 30 days. This represents the highest total holdings on record for sharks.
Furthermore, institutional demand appears to be ramping up again. BTC ETFs recorded $757 million in net inflows yesterday, the strongest level of inflows since mid-July. BTC ETF net inflows so far this week are at $1.15 billion, the strongest level in two months. Persistent shark and institutional demand could help the BTC price rise back up towards record highs.
Bitcoin Technical Analysis
BTC is extending its recovery from the 107.4k September low, pushing above the 113k resistance, which, combined with the RSI over 50, keeps buyers hopeful of further gains.
Buyers will need to rise above the 50 SMA resistance at 114.5k to open the door to 120k and 124.4k, leading to fresh record highs.
Support is seen at 110k and 107.4k. A break below here creates a lower low, opening the door to 105k and 100k.
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