Following the signal from Fed chair Jerome Powell of a possible interest rate cut before the end of the year, Bitcoin's momentum has picked up again. In the past week, Bitcoin surged 10%, closing slightly above $64,000.
Rising Demand for Bitcoin
The demand for Bitcoin among institutional investors has significantly rebounded in the past few days after seeing low interest earlier in August. According to recent market data, US spot Bitcoin ETFs recorded a net cash inflow of more than $550 million over the past two weeks, led by BlackRock’s IBIT and Fidelity’s FBTC. Despite the notable rise in institutional demand, retail traders have not yet shown similar interest. However, the decreasing fear of further crypto capitulation could attract more retail traders in the near future. Moreover, Bitcoin’s fear and greed index surged to 55 percent, indicating greed, as its price jumped to $64,000.
What’s Next?
It has been more than 115 days since the fourth Bitcoin halving, and many experts believe the anticipated parabolic rally is on the horizon. According to popular crypto analyst PlanB, Bitcoin's price will peak in 2025 based on the stock-to-flow (S2F) model. From a technical standpoint, Bitcoin's price has consistently closed above the 50- and 200-day moving averages, despite their recent death cross. The daily Relative Strength Index (RSI) is above the 50% level, indicating bulls have regained significant control. Popular crypto analyst Benjamin Cowen believes that Bitcoin's price has not yet reached the peak of the current bull cycle compared to previous cycles. As a result, he expects Bitcoin dominance to continue rising against altcoins before the anticipated market reversal in 2025.
The Bitcoin market continues to evolve, and analysts recommend keeping an eye on further developments as the anticipated price increase approaches. The Federal Reserve's rate cut may act as a catalyst for bullish movements in the coming months.
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