Bitcoin Price Rises Above $114,000
Bitcoin (BTC) price climbed above $114,000 on Thursday. It broke key resistance the day before. This rise is supported by strong inflows into US Bitcoin ETFs. On Wednesday, these ETFs saw $757 million in inflows, the largest single-day amount since mid-July. The S&P 500 and Nasdaq also hit record highs, boosting market confidence. Traders are now watching US inflation data for signs of possible Federal Reserve rate cuts.
Fed Rate Cut Expectations Boost Markets
Bitcoin reached $114,313 on Wednesday amid positive market sentiment. The S&P 500 and Nasdaq closed at record levels. Japan’s Nikkei 225 also rose over 1% to a new high on Thursday. US data showed the Producer Price Index (PPI) fell to 2.6% year-on-year in August, down from 3.1% in July. Core PPI dropped to 2.8% from 3.4%. This suggests weaker price pressures and softer demand.
These signs increase expectations that the Federal Reserve will cut interest rates next week. The CME Group FedWatch tool shows a 92% chance of a 25-basis-point cut and an 8% chance of a 50-basis-point cut in September. A rate cut could weaken the US Dollar and boost risk assets like Bitcoin. Investors await the US Consumer Price Index (CPI) release for more clues on Fed policy and Bitcoin’s next move.
Strong ETF Inflows and Stablecoin Reserves Support Bitcoin
- Bitcoin ETFs saw $757.14 million inflows on Wednesday, the highest since July 17.
- This marks the third day of ETF inflows this week, showing growing institutional demand.
- Binance recorded a net stablecoin inflow of over $6.2 billion on Monday.
- Binance’s stablecoin reserves hit a new high near $39 billion.
High stablecoin reserves indicate strong liquidity and buying power on Binance. This often supports Bitcoin’s price gains.
Bitcoin Technical Outlook
Bitcoin recently crossed above its 50-day Exponential Moving Average (EMA) at $112,981. After some resistance, it closed above this level on Wednesday and trades near $114,000. If Bitcoin holds above the 50-day EMA, it could rise toward $116,000. A break above $116,000 may push it to the key $120,000 level.
The Relative Strength Index (RSI) is at 54, showing growing bullish momentum. The Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, suggesting an upward trend. If Bitcoin corrects, support lies near $107,245.
