Bitcoin Price Rebounds Above $114k Amid Gold’s Parabolic Rally; Is It a Bull Trap?
Bitcoin (BTC) price saw a much-needed rebound on Monday following a week of heavy liquidation that saw long traders suffer losses. The flagship coin managed to climb around 2% in the past 24 hours, reaching a trading price of approximately $114,210 during the mid-North American session on September 29.
The altcoin market also experienced a rally, with Ethereum (ETH) and Binance Coin (BNB) leading the way. This resulted in the total crypto market cap gaining 2.1% and hovering around $3.94 trillion at the time of writing.
Top Reasons Why Bitcoin Price Rebounded Today
Whales’ Turnaround
CoinShares’ weekly report revealed that Bitcoin’s investment product witnessed a net cash outflow of $719 million last week. The spot BTC ETFs had a significant impact, recording a net cash outflow of $902 million during the same period. However, there was a turnaround on Monday as Michael Saylor’s Strategy disclosed the acquisition of 196 BTC for $22 million. Additionally, Capital B announced the purchase of 12 BTC, increasing its Bitcoin holdings to 2,812 coins.
Gold Rush to Hedge Against Inflation
Bitcoin’s price surge was partially influenced by a notable increase in the price of Gold on Monday. TradingView data showed that Gold had surged over 15% since mid-August, reaching a new all-time high of around $3,833 per Ounce. This surge in Gold prices has raised hopes for a potential Bitcoin pump in the near future. Furthermore, historical performance suggests that Bitcoin is likely to perform well in October.
Has BTC Price Experienced a Dead-Cat-Bounce?
Crypto analyst Benjamin Cowen predicts that Bitcoin’s price will continue to rise in the upcoming weeks, potentially at the expense of altcoins. However, he also anticipates choppy markets in the midterm, especially with the $1.6 billion third distribution of FTX scheduled for September 30.
Overall, the recent rebound in Bitcoin’s price and the positive sentiment in the market indicate a potential bullish outlook for the leading cryptocurrency. With various factors at play, including institutional investments and a surge in Gold prices, Bitcoin could be gearing up for a strong performance in the coming weeks.
