Bitcoin (BTC) price saw a much-needed relief rebound on Monday, following a week of heavy liquidation that led to a 2% increase in the past 24 hours. The flagship cryptocurrency was trading at around $114,210 during the mid-North American session on September 29. The altcoin market also experienced a rally, with Ethereum (ETH) and Binance Coin (BNB) leading the way. The total crypto market cap gained 2.1% and hovered around $3.94 trillion at the time of writing.
Top Reasons Behind Bitcoin’s Rebound Today
Whales’ Turnaround: According to a recent report from CoinShares, Bitcoin’s investment product recorded a net cash outflow of approximately $719 million last week. The outflows were particularly noticeable in spot BTC ETFs, which saw a net cash outflow of around $902 million. However, there was a positive turnaround on Monday when Michael Saylor’s Strategy announced that it had acquired 196 BTC for $22 million. Additionally, Capital B revealed its acquisition of 12 BTC, increasing its Bitcoin holdings to 2,812 coins.
Gold Rush to Hedge Against Inflation: Bitcoin’s price was also influenced by a surge in the price of Gold on Monday. TradingView data showed that Gold had rallied over 15% since mid-August, reaching a new all-time high of approximately $3,833 per Ounce. This surge in Gold prices sparked hope for a potential pump in Bitcoin’s price in the near future. Furthermore, historical data suggests that Bitcoin tends to perform well in October.
Has BTC Price Experienced a Dead-Cat-Bounce?
Crypto analyst Benjamin Cowen believes that Bitcoin’s price is likely to continue rising in the coming weeks, potentially at the expense of altcoins. However, he also predicts choppy markets for Bitcoin in the midterm, especially with the $1.6 billion third distribution of FTX scheduled for September 30.
In conclusion, the recent rebound in Bitcoin’s price has provided some relief to traders after a turbulent week. With positive developments such as whales accumulating more BTC and a surge in Gold prices, there is optimism for further price appreciation in the near future. However, market volatility and external factors like the FTX distribution could still impact Bitcoin’s performance in the coming weeks.