- Current Changes in Bitcoin Price
- ETF Market and Institutional Investments
- Factors Influencing Future Bitcoin Price
After the Federal Reserve's interest rate cut, the question arises about the next drivers of Bitcoin sentiment. In this article, we will examine the current price changes and discuss the key factors that could influence Bitcoin prices in the near future.
Current Changes in Bitcoin Price
On September 24, 2024, Bitcoin shows stability around $63,000 after significant volatility. Earlier in the week, the BTC price dropped from over $60,000 to below $58,000, but surged following the Fed's announcement of a 0.5% (50 basis points) rate cut. This brought Bitcoin's price to $64,000 on Friday, marking the highest level in three weeks.
ETF Market and Institutional Investments
Data from Soso Value shows spot Bitcoin ETF inflows reached $397 million for the period from September 16 to 20, reflecting renewed interest from institutions. Additionally, BlackRock and Microsoft's plans to invest over $30 billion in AI infrastructure also boosted market sentiment, driving up AI-based altcoins like TAO and FET by 87% and 30% respectively.
Factors Influencing Future Bitcoin Price
Panji Yudha, a financial expert at Ajaib Kripto, stated that last week's price increase followed the Federal Reserve's aggressive move to lower the benchmark rate by 50 basis points, from 5.25-5.5% to 4.75-5%. He also noted that more accommodative monetary policy is expected to positively impact crypto assets, particularly Bitcoin. Going forward, important factors influencing Bitcoin sentiment include the Consumer Confidence & Sentiment report, Q2 US GDP updates, weekly jobless claims, and Federal Reserve Chairman Jerome Powell's speech. If inflation is lower than expected, there is a possibility of further rate cuts, which typically benefits Bitcoin and other cryptocurrencies.
Overall, market volatility in the crypto sector is expected to increase depending on the results of economic data releases throughout the week. Investors' sentiment toward Bitcoin will be significantly influenced by these reports and the Federal Reserve's monetary policy actions.
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