Bitcoin Price Holds Above $116,000 After Fed Rate Cut
Bitcoin (BTC) continues its recovery, staying above $116,000 on Friday. This marks three weeks of gains for the cryptocurrency. The Federal Reserve’s recent 25 basis points (bps) interest rate cut helped boost risk appetite in the markets. The Fed also signaled possible further rate cuts in 2025, supporting a positive outlook for Bitcoin.
Institutional and Corporate Investors Increase Bitcoin Holdings
Institutional demand for Bitcoin remains strong. Spot Bitcoin ETFs saw inflows of over $660 million this week, marking the fourth straight week of positive flows. On the corporate side, Michael Saylor’s company, Strategy, added 525 BTC this week. This brings their total Bitcoin holdings to 638,985 BTC. Other firms like Capital B and Prenetics also increased their Bitcoin reserves by 88.6 BTC.
Additionally, NEXT Technology Holding Inc. filed with the US Securities and Exchange Commission (SEC) to raise up to $500 million. The company plans to use part of the funds to buy Bitcoin.
Mixed Signals from On-Chain Data and Market Outlook
On-chain metrics show mixed signals for Bitcoin. Selling pressure is low, with fewer large Bitcoin deposits to exchanges. Total Bitcoin deposits have dropped to about 25,000 BTC on a 7-day average, the lowest in over a year. The average deposit size also fell from 1.14 BTC in July to 0.57 BTC in September.
Meanwhile, USDT stablecoin deposits to exchanges have increased, indicating that large investors are preparing for market moves. However, the market is mostly driven by small retail investors, who hold many small Bitcoin wallets. This suggests a gradual price rise toward $120,000.
Technically, Bitcoin’s weekly Relative Strength Index (RSI) is at 60, showing growing bullish momentum. The daily RSI is 59, supporting an upward trend. If Bitcoin breaks above $120,000, it could target its all-time high near $124,474. But if it falls below $116,000, a drop toward the 50-day moving average near $113,909 is possible.
