Bitcoin Regains Some Lost Ground after Dangerous Dip
Quick overview
- Bitcoin has rebounded to $113,264 after falling to $109K, showing a 1.86% increase in the last 24 hours.
- Recent ETF inflows totaling $219 million have positively impacted Bitcoin's market sentiment and activity.
- Despite underperforming compared to Ethereum and XRP, Bitcoin's stability may help maintain investor confidence.
- High hash rates and a bullish stock market could support Bitcoin's upward momentum in the coming days.
Live BTC/USD Chart
After falling to $109K this week, Bitcoin (BTC) is back up to $113,264 (BTC/USD) with a rally of 1.86% over the last 24 hours, but does this signal a bull trend?
Bitcoin is definitely seeing a surge in network activity and market cap, and as poorly as it has performed recently, the coin is actually up 0.17% over the last week. The whales have held their position strongly, as we have not seen massive selling pressure during this period. It appears that most Bitcoin holders are confident that the coin will regain its lost ground and will eventually hit a new record high.
BTC/USDBitcoin Helped by ETF Inflows
By Monday, there were $219 million in Bitcoin ETF inflows. Ethereum did even better, with more than $440 million in Ether ETF inflows. As ETF purchases increase, Bitcoin is helped indirectly. ETFs track the price of the tied-in cryptocurrency, so with Bitcoin ETFs, the value of the ETF is directly related to Bitcoin’s value. As more ETFs are purchased, the corresponding cryptocurrency
Bitcoin’s hash rate is also high, close to record levels as the network difficulty increases. These factors are pushing Bitcoin’s value higher and keeping it from dropping to dangerous levels where investors sentiment will trend precipitously downward.
Bitcoin’s quick upward momentum at this point in the week could help the coin climb over the next few days, especially since the stock markets are bullish at the moment. The Nasdaq and other top indices are rising partially on the hope that a new interest rate cut will be issued soon. These indices are near record highs, so even when Bitcoin is falling, it may be kept from dipping severely low by a strong market where investors do not have to worry too much about out of control inflation and skyrocketing consumer goods prices.
Investors should know that Bitcoin is underperforming compared to Ethereum (ETH), XRP (XRP), and other top cryptos this week. However, even though these cryptos are rising faster, they are less stable, and Bitcoin’s stability should help to keep investor sentiment high for now.
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