đ° After the Fedâs rate hike, BTC surges 13%? Whatâs behind Wall Streetâs funds returning?
After the Federal Reserve raised rates on September 16, Bitcoin has risen by almost 13% from that day to now. In most cases, Wall Street funds have been buying Bitcoin. According to BeInCrypto data, this rebound is because bad news has already been priced in by the market: high interest rates no longer scare off buyers, and from Bitcoinâs charts, there is still room for further upside.
Why is this news important?
The deeper logic behind this news is that the impact of macroeconomic signals like Fed rate hikes on cryptocurrencies is becoming more differentiated. In the past, rate hikes often led to Bitcoin falling. But now, with funds flowing back from Wall Street, it suggests institutional investors believe the risk profile of Bitcoin has become too highâyet the high-interest-rate environment created by the hikes actually benefits Bitcoinâs cost-of-holding advantage. More fundamentally, this reflects a growing recognition by institutional investors that cryptocurrencies can be part of an asset allocation, rather than just short-term speculation. This aligns with the broader trend this summer of institutional investors starting to systematically build Bitcoin positions.
Market impact
Looking at the effects on BTC and ETH prices, short-term sentiment has been ignited, but the medium- to long-term trend still needs to be observed. ETF inflows are the direct main factor supporting the BTC price. From September 17 to 22, ETFs saw total inflows of $231 million. This scale is already enough to push Bitcoin through the previously reversed head-and-shoulders pattern. In terms of market structure, this means Bitcoinâs dominance may be further reinforced, while other altcoins could continue to face pressure. Regarding the regulatory environment, if institutional capital keeps flowing in, it may put more pressure on regulators and prompt them to roll out clearer regulatory policies.
Trading outlook
đĄ I think this rebound has staying power because ETF inflows and a breakout of the technical pattern are signals that reinforce each other. Key levels to watch are $88K. If it breaks above this level, it could kick off a new round of gains. But if ETF inflows slow down or there is a large-scale sell-off, this view would be invalid.
ăConditions under which the judgment becomes invalidăIf ETFs start showing net outflows of capital next week, this view would be invalid.
This article has no project sponsorship. The author does not hold any of the assets mentioned in the text.
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice. Predictions are for reference only.
#BitcoinHits$85K
After the Federal Reserve raised rates on September 16, Bitcoin has risen by almost 13% from that day to now. In most cases, Wall Street funds have been buying Bitcoin. According to BeInCrypto data, this rebound is because bad news has already been priced in by the market: high interest rates no longer scare off buyers, and from Bitcoinâs charts, there is still room for further upside.
Why is this news important?
The deeper logic behind this news is that the impact of macroeconomic signals like Fed rate hikes on cryptocurrencies is becoming more differentiated. In the past, rate hikes often led to Bitcoin falling. But now, with funds flowing back from Wall Street, it suggests institutional investors believe the risk profile of Bitcoin has become too highâyet the high-interest-rate environment created by the hikes actually benefits Bitcoinâs cost-of-holding advantage. More fundamentally, this reflects a growing recognition by institutional investors that cryptocurrencies can be part of an asset allocation, rather than just short-term speculation. This aligns with the broader trend this summer of institutional investors starting to systematically build Bitcoin positions.
Market impact
Looking at the effects on BTC and ETH prices, short-term sentiment has been ignited, but the medium- to long-term trend still needs to be observed. ETF inflows are the direct main factor supporting the BTC price. From September 17 to 22, ETFs saw total inflows of $231 million. This scale is already enough to push Bitcoin through the previously reversed head-and-shoulders pattern. In terms of market structure, this means Bitcoinâs dominance may be further reinforced, while other altcoins could continue to face pressure. Regarding the regulatory environment, if institutional capital keeps flowing in, it may put more pressure on regulators and prompt them to roll out clearer regulatory policies.
Trading outlook
đĄ I think this rebound has staying power because ETF inflows and a breakout of the technical pattern are signals that reinforce each other. Key levels to watch are $88K. If it breaks above this level, it could kick off a new round of gains. But if ETF inflows slow down or there is a large-scale sell-off, this view would be invalid.
ăConditions under which the judgment becomes invalidăIf ETFs start showing net outflows of capital next week, this view would be invalid.
This article has no project sponsorship. The author does not hold any of the assets mentioned in the text.
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice. Predictions are for reference only.
#BitcoinHits$85K
