- Bitcoin rebounds 10% after rebounding from lows near $52,000.
- Institutional momentum is growing as ETF capital flows reach nearly $18 billion.
- Concerns over strict cryptocurrency regulation ease after Harris’ comments.
Despite September’s reputation as Bitcoin’s worst month, the cryptocurrency has rallied from nearly $52,000 to trade above $63,000.
Bernstein analysts highlighted several key factors behind the rebound.
The Federal Reserve
The Federal Reserve’s 50 basis point interest rate cut last week sparked renewed interest in risk assets, with Bitcoin benefiting from expectations of looser monetary policy and a weakening U.S. dollar.
MicroStrategies
Institutional momentum has also driven Bitcoin’s rise.
MicroStrategy’s aggressive Bitcoin accumulation—which now holds 252,220 Bitcoins—further bolsters market confidence.
ETF Entries
Bitcoin ETFs have seen $800 million in inflows over the past 10 days. Those flows have bucked a recent lull after the ETFs’ launch in February, which sparked a record accumulation of nearly $18 billion.
The SEC’s recent approval of options trading on BlackRock’s iShares Bitcoin Trust has also sparked renewed interest. This opens up a new avenue that could soon drive even more inflows into Bitcoin ETFs.
Comparison of gold
With the US fiscal debt reaching nearly $35 trillion, Bitcoin is being seen as a non-sovereign alternative to traditional assets, much like gold, Bernstein says.
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Gold prices today hit a new all-time high of over $2,620 per ounce.
Fears are easing
Bernstein analysts also note that earlier market fears have largely faded.
Concerns over the German government’s $3 billion Bitcoin sale and Mt. Gox’s long-awaited bankruptcy distributions have eased.
Additionally, concerns surrounding Vice President Kamala Harris’ potential to impose strict regulation on cryptocurrencies have eased, as her recent comments signal a more measured approach focused on protecting consumers while supporting innovation.
