Bitcoin (BTC) surged towards $63,000 at the opening of Wall Street on September 19, following the upward trend of stocks. The BTC/USD 1-hour chart showed new three-week highs near $63,500 on Bitstamp. The excitement over the United States’ long-term financial policy easing continued after the Federal Reserve made an oversized 0.5% interest rate cut. As a result, both equities and gold experienced gains, with the S&P 500 nearing new all-time highs. BTC/USD also began to make progress towards its own record peak from March.
According to trading firm QCP Capital, the US 2Y/10Y treasury spread, an indicator of recession, has been inverted since July 2022 but has recently steepened, reflecting market optimism and a shift towards risk-on assets. QCP also noted that the Fed has planned further interest rate cuts, with two expected before the end of the year. The S&P 500 and Nasdaq have already seen a 20% increase in value this year alone, according to trading resource The Kobeissi Letter.
Bitcoin traders reacted positively to these developments. Byzantine General, a popular trader and social media commentator, described the spot markets as “strong,” while crypto trader Michaël van de Poppe stated that BTC/USD was “doing great.” Van de Poppe also predicted a consolidation phase before further upward movement, emphasizing the ample opportunities to buy the dips.
Data from monitoring resource CoinGlass indicated that resistance was building just below $64,000, which is a popular post-Fed price target for BTC. The data also revealed a shift in institutional sentiment towards Bitcoin. Ki Young Ju, founder of onchain analytics platform CryptoQuant, shared a chart showing a significant slowdown in institutional BTC shorting, suggesting that institutions are no longer aggressively shorting Bitcoin.
In contrast, US spot Bitcoin exchange-traded funds (ETFs) experienced net negative inflows on September 18, according to Farside Investors, a UK-based investment firm. This was a significant change from the previous day’s positive inflow of $187 million.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and be aware of the risks involved in every investment and trading move.