Bitcoin (BTC-USD) saw a modest rebound on Monday, rising more than 1% against the dollar to trade at $58,455. This increase came after a tumultuous week where the cryptocurrency experienced a sharp decline of over 10%.
Ethereum (ETH-USD), the second-largest cryptocurrency, also gained 1.9% against the dollar, pushing its value above the $2,500 mark.
The significant dip in Bitcoin’s value last week was marked by a series of outflows from spot Bitcoin exchange-traded funds (ETFs). Following an optimistic start, spot Bitcoin ETFs faced four consecutive days of outflows, culminating in approximately $277 million in net outflows, as reported by Fineqia analysts.
Fineqia research analyst Matteo Greco noted, “Interestingly, the correlation between BTC’s price action and the ETF flows appeared weak. Positive inflows were recorded on Monday and Tuesday despite the significant price drop from over $64,000 to $58,000.” Greco suggested that the decline might be more closely related to on-chain activities and digital asset exchange behaviors rather than ETF flows.
Despite the outflows, trading volumes remained robust. BTC spot ETFs saw around $7.7 billion in cumulative trading volume for the week and approximately $40 billion for August. This high level of activity, unusual for the typically quieter months of July and August, signals strong ongoing interest in Bitcoin-based financial products.
Historically, September has been a challenging month for Bitcoin, known for its volatility. This period is also notable in traditional financial markets, as it often precedes key financial and political events. Traders are currently navigating uncertainties surrounding interest rates and the upcoming U.S. election.
A potential interest rate cut by the Federal Reserve in September could positively impact Bitcoin’s outlook. Many analysts predict that rate cuts would be bullish for cryptocurrencies, which are often categorized as risk assets.
As the market moves through September, the interplay between interest rate policies and Bitcoin’s price trajectory will be crucial in shaping investor sentiment and market dynamics.
hii Aditi Sahu this side..
As an author and writer specializing in investment and finance , I am dedicated to delivering insightful articles and news stories that inform and engage the investment community . My focus is on providing timely and relevant content that covers market trends , innovative strategies , and key financial development . My goal is to equip investors with the knowledge and insights needed to make informed decisions and succeed in a dynamic financial environment.
