- •Nexo analyst Iliya Kalchev notes US rate cut boosts Bitcoin ETF demand.
- •Potential absorption of over 100,000 BTC this quarter.
- •Awaiting Federal Reserve communications for market impact clarity.
Iliya Kalchev, Nexo analyst, announced on October 4th that U.S. interest rate cut expectations have sparked renewed demand for Bitcoin ETFs, with potential impacts on market supply.
This surge in interest could significantly reduce Bitcoin's circulation, impacting prices; however, market direction hinges on upcoming Federal Reserve announcements and U.S. job report releases amid the government shutdown.
Institutional Trends Point to Bullish Bitcoin Outlook
Market observers are focused on Jerome Powell's upcoming speech and the FOMC meeting minutes for clues. Their responses underscore the uncertainty due to the release delay of key economic data, like the US jobs report, caused by the first government shutdown since 2018.
According to CoinMarketCap, Bitcoin's market cap stands at $2.44 trillion with a price of $122,332.73. Recent data shows a 1.55% 24-hour increase and 11.88% gain over seven days. The trading volume reached $76.11 billion, marking a 5.40% change. Bitcoin's price, influenced by interest rate expectations and ETF demand, is currently recording a 13.30% rise over the past 90 days.
Insights from Coincu research signal potential financial shifts. Institutional buying trends reflect a strong bullish stance on spot Bitcoin exposure amid anticipated Federal Reserve policy easing, signaling a potential asset rally if dovish policies are confirmed, further impacting ETF trends.
Market Reactions and Future Outlook
Did you know? In past Q4 periods mirroring potential dovish Federal Reserve actions, Bitcoin and Ethereum saw notable inflows, echoing a similar pattern in late 2020 and 2021.
Recent data shows a strong bullish sentiment in the market, with analysts predicting continued growth in Bitcoin ETF inflows as interest rates remain low.
Experts suggest that the current economic climate and Federal Reserve policies could lead to a significant shift in investment strategies, making Bitcoin ETFs an attractive option for institutional investors.