Bitcoin captured attention with a modest price increase at the start of the week, following a rough beginning in September. After experiencing a 7% drop earlier in the month, Bitcoin’s price saw a slight rebound over the weekend, trading above $54,800 with a 0.65% rise in the last 24 hours.
Why Are Key Figures Closing Short Positions?
Sean McNulty, Trading Director at Arbelos Markets, attributed Bitcoin’s price uptick to important market players closing their short positions. One notable example is BitMEX co-founder Arthur Hayes, who recently terminated his short positions, helping drive the price increase. Access NEWSLINKER to get the latest technology news.
Political developments also appear to influence Bitcoin’s recent climb. Republican presidential candidate Donald Trump, who supports cryptocurrencies, has seen a significant recovery in polls, with his winning probability rising above 50%. McNulty suggested this optimism might be boosting market sentiment towards Bitcoin. Additionally, the rising demand for options hedging indicates that investors are bracing for potential volatility ahead of the upcoming debate between Trump and Democratic Vice President Kamala Harris, who has yet to clarify her stance on cryptocurrencies.
What Is Happening with Bitcoin ETFs?
Meanwhile, global market uncertainties continue to exert pressure on Bitcoin. Bloomberg data shows substantial outflows from US spot Bitcoin exchange-traded funds (ETFs), with investors withdrawing approximately $1.2 billion from 12 such ETFs in the seven days ending September 6. This represents the longest series of net outflows since these funds were launched earlier this year. The withdrawals align with broader market turbulence, as concerns about US economic growth have led to declines in stocks and commodities.
Key Insights from Recent Market Data
– Bitcoin’s price rose slightly to above $54,800 after a challenging start in September.
– The closure of short positions by key figures like Arthur Hayes contributed to this rise.
– Political factors, including Donald Trump’s improved polling numbers, positively impacted market sentiment.
– Significant outflows from US spot Bitcoin ETFs reflect broader market anxieties.
Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for cryptocurrency derivatives trading, noted that Bitcoin might remain within its recent trading range of $53,000 to $57,000 ahead of the US Consumer Price Index (CPI) data release on Wednesday. Market participants believe the inflation trend will significantly impact the Federal Reserve’s monetary policy and the broader economic outlook, making this upcoming data release crucial for understanding Bitcoin’s trajectory.
The cryptocurrency market remains cautious as investors prepare for significant political and financial developments that could lead to increased price volatility amid ongoing economic uncertainties. As of now, BTC is trading at $54,806 with a 0.73% rise in the last 24 hours, and the total market value of cryptocurrencies stands at $1.94 trillion, still below the $2 trillion mark.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-rises-as-key-figures-close-shorts