On September 21, QCP Capital released its daily report indicating that cryptocurrencies have experienced a notable surge, marking their third consecutive day of gains. Bitcoin (BTC) once again tested the impressive $64,000 mark, while Ethereum (ETH) made a solid return to the $2,500 threshold. This upward momentum can be attributed to significant inflows into Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs).
Over the last two days, Bitcoin ETFs alone have recorded net inflows amounting to $250.3 million, while Ethereum ETFs have witnessed a promising $8.1 million in net inflows. Interestingly, the current market environment appears relatively stable, with no major macroeconomic events anticipated prior to Friday.
The only notable event on the horizon is the upcoming Personal Consumption Expenditures (PCE) price report, which investors are closely monitoring. As the market adjusts to expectations regarding rate cuts, there seems to be a gradual decline in enthusiasm. As of this morning, Bitcoin has experienced a slight pullback, sinking below the $63,000 mark.
This shift may reflect broader market sentiments as traders recalibrate their positions in response to evolving economic indicators. Furthermore, within the options market, front-end Bitcoin volatility has decreased by 6 points from yesterday's peak, indicating a calmer trading environment. As the market navigates through the potential implications of policy normalization, volatility continues on a gradual decline.
This adjustment reflects the evolving nature of investor sentiment and market dynamics in the cryptocurrency space, where fluctuations in price can rapidly sway perceptions and trading strategies..