According to CoinWorld, on Wednesday, Bitcoin (BTC) continued to struggle around the $64,000 threshold, with a trading price increase of 0.3% to $63,850, while market experts noted a growing bullish sentiment.
Potential Catalysts for Further Growth.
Although the cryptocurrency has faced challenges in breaking through this level in the short term, analysts have pointed out several positive indicators that could drive Bitcoin’s next upward movement. Meanwhile, Ethereum saw a 1% decline, trading at $2,625.
Data from CoinGecko shows that the U.S. spot Bitcoin ETF has continued to perform strongly, registering net inflows for the fourth consecutive day. On September 24, the total net inflow for these ETFs reached $136 million, with BlackRock’s iShares Bitcoin Trust (IBIT) leading with deposits of $98.8 million. The Ethereum spot ETF also performed well, with a total net inflow of $62.5 million, primarily driven by BlackRock’s ETHA contributing $59.2 million.
In a communication to Decrypt, Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, stated that last week’s Federal Open Market Committee decision and the steepening of the U.S. Treasury yield curve supported Bitcoin, referencing the current yield curve spread of +21 basis points.
He wrote that a yield curve spread of +21 basis points implies that the yield on 10-year U.S. Treasury bonds is 0.21% higher than that of 2-year bonds. A steeper curve suggests an optimistic outlook for future economic growth, which could support an increase in Bitcoin prices.
“This rapid accumulation rate indicates that it is not just about price increases—people believe that broader market conditions are favorable for Bitcoin, particularly following Vice President Harris’s comments encouraging the cryptocurrency industry,” Kendrick said.
According to data from AltIndex, sentiment surrounding Bitcoin surged to 83 on a scale of 0 to 100, marking a significant shift towards market optimism. After several weeks of neutral sentiment, the positive outlook has sparked speculation that Bitcoin could soon break through its current resistance levels.
“Google search trends for Bitcoin have begun to rise, suggesting growing interest in the cryptocurrency. The increase in search volume could be an early sign of a new bull market cycle,” he noted.
In a conversation with Decrypt, Avinash Shekhar, co-founder and CEO of Indian cryptocurrency derivatives company Pi42, stated that Bitcoin needs market momentum to break through the $65,000 mark. He added that while Ethereum also shows a bullish trajectory, traders and investors are concerned about a potential drop to $2,500.
He said, “China’s announcement of interest rate cuts has also fueled bullish momentum in the cryptocurrency market.” He cautioned that while a bullish market indicates the potential for greater returns, obstacles such as resistance levels and market slowdowns remain.
“Investors are optimistic about BTC’s market growth target of $65,000, ETH’s $2,700, and BNB’s $650. This bullish trend and growth could attract new investors or traders,” he added.
Edited by Stacy Elliott