As the cryptocurrency markets aim to recover, Bitcoin ETFs are experiencing a significant resurgence. On September 10th, these ETFs saw a substantial inflow of $117 million, breaking an eight-day dry spell. Top analyst Michael van de Poppe predicts a surge in Bitcoin’s price, driven by these positive ETF inflows and the anticipated release of Consumer Price Index (CPI) data.
Bitcoin Shows Bullish Move
Renowned crypto analyst Michael van de Poppe has highlighted a strong upward movement in Bitcoin’s price, attributing it to positive inflows from Bitcoin ETFs. On September 10th, Bitcoin ETFs received an impressive $117 million, marking a significant milestone.
Van de Poppe commented on this development, stating, “Significant move upward for Bitcoin, through which the inflow in the ETF was positive. Good news! However, during Asian trading hours, Bitcoin dropped back down. I’d like to see whether the inflow is going to pick up momentum after the CPI report.”
On the same day, Grayscale’s Bitcoin Mini Trust (BTC) and ARK Invest/21Shares’ Bitcoin ETF (ARKB) witnessed notable inflows of $41.1 million and $12.7 million, respectively. This encouraging news has given investors renewed hope, suggesting that Bitcoin might be on the cusp of a significant increase.
Despite the initial surge, Bitcoin experienced a slight dip during Asian trading hours. However, van de Poppe remains optimistic that the ETF news could still drive future gains. The upcoming CPI report is now seen as a crucial factor in determining Bitcoin’s next move.
Expected US CPI Report
The upcoming CPI report, a key measure of inflation, is expected to have a significant impact on market sentiment. Analysts anticipate that the August CPI data will drop to 2.6%, down from 2.9% in July.
If the CPI report yields a positive result, it could bolster investor confidence in Bitcoin. This heightened confidence might lead to an increase in Bitcoin’s price, further driving its bullish momentum.
Rate Cuts Ahead To Ignite Bull Run
Echoing a bullish sentiment, Benjamin Cowen, CEO of IntoTheCryptoverse, has pointed out that Bitcoin’s current cycle resembles its performance in 2019. He asserts that rate cuts by the Federal Reserve could significantly influence Bitcoin’s price trajectory.
Cowen noted that Bitcoin might require between 165 and 175 basis points of rate cuts to overcome its current low points. If these rate cuts extend into 2025, they may delay a major price recovery. This situation mirrors 2019 when Bitcoin initially dipped after rate cuts but eventually rebounded strongly.
In conclusion, the cryptocurrency market is closely watching the developments surrounding Bitcoin ETFs and the upcoming CPI report. Positive ETF inflows and favorable CPI data could drive Bitcoin’s price higher, while potential rate cuts by the Federal Reserve add another layer of complexity to its future performance. Investors and analysts alike are keenly observing these factors to gauge Bitcoin’s next move in the ever-evolving financial landscape.
