Bitcoin kicked off the last week of September with a push to one-month highs, spiking to $64,700 after a strong weekly close. Traders are now eyeing $65,000 as the next key resistance level. The price has been battling the 200-day moving average at $63,925 for the past five days, a level that previously rejected Bitcoin twice in August. According to CoinSwitch’s Market Desk, “A daily close above $64,000 would give bulls more confidence, while a close above $65,000 could break the lower-high pattern, turning Bitcoin’s outlook very bullish.”
Bitcoin ETFs have also seen significant inflows, with $397.2 million added last week, signaling strong institutional interest. Notably, ETFs bought 6,573 BTC while miners produced only 3,150 BTC, creating supply pressure. Despite these positive indicators, Bitcoin remains 13.6% below its all-time high, even as traditional markets like gold, the S&P 500, and the Dow Jones hit record levels.
The altcoin market is also experiencing a boom, supported by last week’s 0.5% interest rate cut by the Federal Reserve and the Bank of Japan keeping rates unchanged. Ethereum, which had underperformed for weeks, has started to gain traction after hitting the lowest ETH/BTC ratio in over 3.5 years. Although concerns over Ethereum’s inflationary supply linger, CoinSwitch experts noted, “It remains less inflationary than Bitcoin, suggesting that if BTC rallies, ETH could follow. Additionally, BlackRock announced plans for a $30 billion AI-focused fund with Microsoft, which has fueled excitement in AI-focused crypto coins like BitTensor, FET, and Near Protocol, all showing strong weekly gains. Solana Labs announced its second crypto phone, “Seeker,” will launch in 2025.”
On the regulatory and political front, the upcoming U.S. elections are making waves in the crypto space. Donald Trump has pivoted his stance on Bitcoin, now proposing a “strategic national Bitcoin stockpile” akin to the U.S. gold reserves, and even launched a new crypto business, World Liberty Financial. Meanwhile, Kamala Harris, the Democratic candidate, mentioned her support for emerging technologies like digital assets for the first time, stirring excitement among crypto enthusiasts. “With crypto now firmly in the political spotlight, alongside favourable macroeconomic conditions, Q4 2024 is shaping up to be a pivotal period for the markets, with bullish sentiment building.” CoinSwitch’s Market Desk highlighted.
MicroStrategy’s recent $489 million investment in Bitcoin, bringing its total holdings to over 252,000 BTC, further reinforces the positive outlook. As CoinSwitch’s desk concluded, “With these macro and political tailwinds, Bitcoin appears well-positioned for a significant breakout as we move further into the year.”
