By Wednesday afternoon, the price of Bitcoin (BTC) was below $64,000. After the price exceeded the 200-day moving average for the first time in September, recording a rise of around $64,755. Bitcoin is currently at a crucial support/resistance level near $64,000, which will affect its price movement in the coming weeks.
Despite Bitcoin’s downward trend after hitting a historic high of around $73,800 six months ago, optimism about its price at $63,641 is growing in the short term. Historically, almost every fourth quarter sees bullish trends in the market.
Chain analyses reveal that three whale investors have withdrawn nearly $300 million of bitcoin from the Binance exchange in the past 24 hours, with more than 97,000 bitcoins withdrawn from centralized exchanges in the last month. These moves point to a decline in the supply of Bitcoin on these exchanges.
Market Overview
With rising geopolitical tensions in the Middle East and conflicts between Russia and NATO, global economic transformation continues to accelerate. Gold prices saw a record high of around $2,655 an ounce, reflecting the growing need to protect investments from inflation and global uncertainty.
At the same time, major economies, including the United States, the European Union, Canada, and China, have begun to cut interest rates to stimulate near-term growth. Growing demand for bitcoin, driven by nation-states such as El Salvador and Bhutan, is expected to continue to influence the long-term accumulation strategies of institutional investors.
In short, Bitcoin’s current price movements and increased whale investments provide a mix of challenges and opportunities for the period ahead. As investors watch the price sustainability above $64,000, they should take market dynamics into account with broader economic and geopolitical developments.
Positive Flows to Bitcoin Funds: Is the Market Recovering?
The US Bitcoin Spot ETF market recorded positive signs, with total net inflows of $136 million on September 24. High-profile funds such as Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Bitcoin Trust (IBIT) recovered some of their losses from the Grayscale Bitcoin Trust (GBTC). Bitcoin is targeting the $65,000 level as inflows to ETFs increase.
On the same day, positive flows continued, with the Bitwise Bitcoin ETF (BITB) generating net inflows of $17.4 million, while FBTC and BTC attracted inflows of $16.8 million and $2.9 million, respectively. It is worth noting that GBTC recorded no net inflows, while IBIT Its second influx since late August, probably due to new requirements imposed by BlackRock for Bitcoin withdrawals. BlackRock has also purchased 1,547 bitcoins, which may also support the rise in the price of bitcoin.
Consumer confidence fell in the US, with the CB Consumer Confidence Index falling from 105.6 in August to 98.7 in September, raising concerns about consumer spending and its impact on the economy and demand for bitcoin. The coin experienced a temporary decline to $62,764 during this period of uncertainty.
In Congress, SEC Chairman Gary Gensler faced tough questions about cryptocurrency regulation, with House Majority Leader Tom Emer challenging Gensler over the actions of the SEC, citing recent support for more explicit digital asset rules from Vice President Kamala Harris. This partisan trend towards more explicit regulation may contribute to boosting investor confidence in the cryptocurrency market.
US housing market data will reveal a 5.1% drop in new home sales, signaling a weakening economy. This decline could influence consumer sentiment and impact bitcoin prices.
Unprecedented moves for BTC: a billion dollars in mysterious exchanges
Significant bitcoin (BTC) transfers between anonymous wallets have been spotted in recent days. Multiple unknown addresses transferred a billion dollars’ worth of bitcoin in minute batches of 2,000 coins to new wallets. Mystery surrounds these moves, and the identity behind these addresses remains unknown, raising questions about the purpose of these operations.
However, according to Arkham Intelligence data, evidence suggests that one of the addresses used in the transmission may be linked to Fidelity Custody, a leading digital asset custodian, managing about $5.4 trillion in assets. This year, Fidelity added a spot bitcoin trading fund, known as FBTC., to its asset-rich portfolio, strengthening its position in the cryptocurrency market.
If we believe the data, the FBTC fund now shows holdings of 287,153 BTC worth $18.35 billion, plus 287,064 ETH worth $753.91 million. These holdings include high-profile clients such as MicroStrategy, Fidelity FBTC ETF and Fidelity FETH ETF, indicating the importance of these conversions.
In recent days, inflows into the FBTC fund have outpaced outflows, indicating that the movement of a billion dollars in bitcoin between addresses may signal the start of a new phase of positive flows toward Bitcoin ETFs. This reflects a growing demand for cryptocurrency, and this demand may be encouraging for the price of BTC., which settled at 16.5% from an all-time high. Therefore, these transfers remain the focus of interest of many traders and investors in the market, as they can have significant effects on the future trends of the currency.
