Bitcoin Falters at $116K Amid Sharp Selling Pressure
Quick overview
- Bitcoin is struggling to regain its record high after peaking at $116K and falling back to $114,952.
- Despite a recent surge, Bitcoin has only seen minor gains, up just 0.4% in the past 24 hours.
- Bitcoin ETFs are experiencing significant inflows, with $1.7 billion reported this week, highlighting strong interest in bitcoin-related investments.
- The current economic environment, marked by rising inflation and unemployment, is negatively impacting Bitcoin's performance.
Bitcoin (BTC) is unable to climb back up to its record high after it stumbled at the $116K mark and fell back down to $114,952 (BTC/USD) on Friday.
Leading crypto token Bitcoin has not been able to regain its record highs throughout September. The coin surged late Thursday evening and hit a month-high of $116,011, which triggered a selloff that dropped the price almost to where it was before the surge. Only minor gains have been kept, as Bitcoin is up just 0.4% for the past 24 hours.
BTC/USDBitcoin ETFs are doing much better, with four straight days of inflow, with $1.7 billion reported since the start of the week. The interest in bitcoin-related ETFs has never been higher, and yet Bitcoin is unable to get back to its August highs.
Why Is Bitcoin Struggling?
It is obvious that Bitcoin is not doing as well now as it did in August or back in December and January when investor sentiment was extremely positive. The reason for that is partially due to rising inflation. The latest CPI report shows that inflation is up, prices are rising, and unemployment claims are increasing. That creates a poor environment for speculative digital currency like Bitcoin to thrive.
Bitcoin tends to do better when the market is not worried so much about inflation and rising prices. The situation may start to improve somewhat next week if the Federal Reserve issues a rate cut, but then again, Bitcoin did not surge as expected during the last rate cut, so there may be a repeat of that this time.
Several other cryptocurrencies are outperforming Bitcoin and may continue to do so until this coin reaches a new high. It could be weeks before we see Bitcoin achieve that. However, Thursday’s high above $116K is promising, and it could be more than a simple quirk. If Bitcoin grabs investor interest over the weekend as the stock market closes down, we could see this coin surge to $120K early next week.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save