Bitcoin surged to $64,700 at the end of September, reaching its highest point in a month after a strong weekly close. Traders are eyeing $65,000 as a critical resistance level, a mark it has struggled to cross after repeated rejections at $63,925, which coincides with its 200-day moving average. CoinSwitch’s Market Desk says, “A daily close above $64,000 would give bulls more confidence, while a close above $65,000 could break the lower-high pattern, turning Bitcoin’s outlook very bullish.”
A significant boost in Bitcoin exchange-traded fund (ETF) inflows, with $397.2 million added last week, signals growing institutional interest. These ETFs purchased 6,573 BTC, while miners produced just 3,150 BTC, creating notable supply pressure. Despite Bitcoin’s recent strength, it still trades 13.6% below its all-time high, even as traditional markets like the S&P 500 and gold reach record levels.
The altcoin market also sees renewed energy, driven partly by macroeconomic factors. A 0.5% interest rate cut by the Federal Reserve and a pause in rate hikes from the Bank of Japan have boosted confidence in the market. Ethereum, which had been underperforming, is now regaining momentum after hitting a low ETH/BTC ratio not seen in over 3.5 years. While concerns about Ethereum’s inflationary supply persist, CoinSwitch experts argue, “It remains less inflationary than Bitcoin, suggesting that if BTC rallies, ETH could follow.”
Excitement is also building around AI-focused cryptocurrencies, spurred by BlackRock’s announcement of a $30 billion AI-focused fund in collaboration with Microsoft. Coins like BitTensor, FET, and Near Protocol have shown weekly solid gains. Additionally, Solana Labs announced plans to launch its second crypto phone, “Seeker,” in 2025, further driving interest in the space.
On the political front, Donald Trump’s proposal for a national Bitcoin stockpile and Kamala Harris’s newfound support for digital assets have put crypto in the political spotlight ahead of the U.S. elections. With macroeconomic conditions and political developments aligning, analysts believe Bitcoin is well-positioned for a significant breakout in Q4 2024.
