Stacks

Jerome Powell

Wednesday

Bitcoin

Reserve

Bitcoin price held steady above $60,000 on Thursday, Aug. 29, even as its exchange-traded funds saw two consecutive days of outflows. 
Data from SoSoValue shows that Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) ETFs lost <a href="https://crypto.news/spot-bitcoin-etfs-see-outflows-of-105-19m-ether-etfs-break-9-day-outflow-streak/" target="_blank" rel="noreferrer noopener">$105.19 million</a> in assets on Wednesday after shedding $127 million the previous day. These funds have accumulated $17.85 billion in assets, with most of the money coming from institutional investors. 
Bitcoin has several catalysts that could push it higher in the long term, as <a href="https://crypto.news/4-reasons-why-bitcoin-price-could-rise-to-68k/" target="_blank" rel="noreferrer noopener">was reported earlier this week</a>.&nbsp; 
Another potential catalyst is that the amount of coins held in exchanges has dropped to the lowest point this year. According to CoinGlass, exchanges held 2.38 million coins on Aug. 29, down from 2.4 million in Aug. 27 and last month’s high of 2.50 million.&nbsp; 
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 Bitcoin reserves in exchanges | Source: <a href="https://www.coinglass.com/Balance" target="_blank" rel="">CoinGlass</a>
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Falling Bitcoin reserves often indicate low liquidity in the market and suggest that most investors are no longer moving their coins from wallets to exchanges, a key step in liquidation. For example, Bitcoin reserves surged in July when the German government liquidated its reserves. 
 You might also like: <a href="https://crypto.news/bitcoin-layer-2-stacks-readies-for-nakamoto-upgrade-activation/"> Bitcoin Layer 2 Stacks readies for Nakamoto upgrade activation </a> 
The falling US dollar and growing US public debt are other potential catalysts for Bitcoin. The US dollar index, which measures the price of the greenback against a basket of currencies like the euro, pound, and Swiss franc, fell to $101.50, down over 4.7% from its highest level this year. The US dollar has pulled back after Federal Reserve chief Jerome Powell hinted at possible rate cuts in the September meeting. 
The US dollar has pulled back after the Federal Reserve chair hinted that the bank will start cutting rates in its September meeting.&nbsp; 
Additionally, the US public debt has continued rising and is moving to unsustainable levels, making Bitcoin a viable alternative. Data by US Debt Clock shows that the national debt jumped to over $35.2 trillion, or 123.2% of the GDP. Annual interest on this debt has jumped to over $920 billion.&nbsp; 
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 There is now more liquidity than ever. $95 TRILLION in global liquidity. What will happen to all this liquidity. Only time will tell. Money moves money. <a href="https://t.co/3vah8EYj6e" target="_blank" rel="">pic.twitter.com/3vah8EYj6e</a>— Altcoin Buzz (@Altcoinbuzzio) <a href="https://twitter.com/Altcoinbuzzio/status/1828632812209254574?ref_src=twsrc%5Etfw" target="_blank" rel="">August 28, 2024</a>
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The same trend is occurring globally, with liquidity reaching a record high of $95 trillion. As a result, more institutions and retail investors may turn to alternatives, first to gold, and then to Bitcoin. 
Meanwhile, the <a href="https://crypto.news/bitcoin-mining-stocks-stay-weak-as-options-market-hints-at-rebound/" target="_blank" rel="noreferrer noopener">options market</a> is pointing to a potential Bitcoin rebound, potentially to $90,000 later this year. Additionally, Bitcoin <a href="https://www.coinglass.com/FundingRate" target="_blank" rel="">funding rate</a> has dropped to -0.0011%, pointing to more upside. 
 You might also like: <a href="https://crypto.news/bitcoins-funding-rate-shows-potential-rebound-on-the-way/"> Bitcoin’s funding rate shows potential rebound on the way </a>

Bitcoin price could rise as exchange reserves hit 2024 lows

crypto.news

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