Bitcoin (BTC) Price Surges 2% After FOMC Minutes Signal a Possible Rate Cut Next Month

Led by BlackRock's IBIT, the US-based spot Bitcoin ETFs have registered more than $210 million in cash inflows over the past two weeks.

Fresh institutional demand for Bitcoin (BTC) has surfaced following another round of approval for spot exchange-traded funds (ETFs) in the United States.

After the Federal Reserve released FOMC minutes on Aug. 17 that signaled a possible interest rate cut next month, BTC price rose 2% to hit a daily high of around $61,830. But the flagship coin encountered a strong resistance level around the 50-day Moving Average (MA).

However, the daily Relative Strength Index (RSI) has since rebounded above 50%, indicating a re-emergence of bullish momentum. In other news, the price of gold hit a new all-time high of over $2,500 an ounce, amid the ongoing rally in major global stock indices, led by Japan's Nikkei 225.

Institutional demand for Bitcoin rises

US #ETF 21 AUG: ?$40M to $BTC and ?$18M to $ETH

? BTC ETF UPDATE (final):

–$40M net flow

–Positive net flow for the past 5 trading days

–Yesterday's flow volume was generally weak

? ETH ETF UPDATE (final):

–$18M net outflow

–Negative net flow… https://t.co/KLTWX4ypd6

Led by BlackRock's IBIT, US-based spot Bitcoin ETFs have seen over $210 million in cash inflows over the past two weeks.

On Aug. 21, US spot Bitcoin ETFs had a net cash inflow of about $40 million, bringing the total assets under management to around $55.96 billion.

According to on-chain data analysis by Coinglass, the supply of Bitcoin on centralized exchanges has continued to drop in the past five months, despite the bearish outlook.

More institutional investors — led by Metaplanet Inc., MicroStrategy, and Marathon Digital, among others — have ramped up their accumulation pace in recent years.

What's next?

From a technical perspective, BTC price is at a critical juncture that could lead to either a major bull run in the near term or further capitulation.

The ongoing demand for altcoins, as evidenced by the recent approval of spot Ether (ETH) and Solana (SOL) ETFs in the Americas, could drive a reversal in Bitcoin dominance.

Despite everything, #BTC is right around where it always is at this point in the market cycle pic.twitter.com/zO52x9tAtX

Meanwhile, crypto analyst Benjamin Cowen suggests that the flagship coin is setting up for a parabolic rally in the coming months, compared to previous bull cycles.

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