Bitcoin (BTC) surpassed $63,000 at the opening of Wall Street on September 19, with the BTC price also rising along with stocks.
BTC/USD 1-hour chart. Source: TradingView
BTC Price Rally Begins to Tied with Booming Stocks
According to data from Cointelegraph Markets Pro and TradingView, it hit a new three-week high near $63,500 on Bitstamp.
Expectations for a more easing of long-term U.S. monetary policy persisted after the Federal Reserve cut interest rates by a record 0.5 percent the previous day.
Stocks and gold both rose, the S&P 500 neared new highs, and BTC/USD finally started making headway toward a key resistance level near its March highs.
“The U.S. 2-year/10-year Treasury yield spread, a recession indicator, has been inverted since July 2022, but has recently risen sharply to +8bp, reflecting market optimism and a shift toward riskier assets,” trading firm QCP Capital wrote in a recent announcement to subscribers to its Telegram channel.
QCP said the Fed is planning further cuts, two of which could come before the end of the year.
“The S&P 500 and Nasdaq are up more than 20% this year alone,” trading resource The Kobeissi Letter continued in part of its X report that day.
“Since September 6, the S&P 500 has added $3 trillion in market cap. It’s incredible.”
S&P 500 vs. BTC/USD 1-day chart. Source: TradingView
As a result, Bitcoin traders were as bullish as expected.
Popular trader and social media commentator Byzantine General described the spot market as “strong,” while crypto trader, analyst and entrepreneur Michaël van de Poppe said BTC/USD is “doing great.”
“I think there will be a consolidation before it continues to go up, but fundamentally the market has been up since Powell spoke. Not much more. There is just plenty of room to buy the dip,” Van de Poppe told X followers.
BTC/USDT 4-hour chart. Source: Michaël van de Poppe/X
According to the latest data from monitoring resource CoinGlass, resistance is thickening just below $64,000, a popular post-Fed BTC price target.
BTC Liquidation Heatmap (screenshot). Source: CoinGlass
Institutions “No Longer Aggressively Short Bitcoin”
While the flow on U.S. spot Bitcoin exchange-traded funds (ETFs) has been mixed this week, new data shows a shift in stance among institutions.
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Data uploaded to X by Kiyoung Joo, founder of on-chain analytics platform CryptoQuant, showed that institutional BTC short selling volumes have slowed dramatically.
“Institutions are no longer shorting bitcoin as aggressively,” he noted, along with a chart of CME Group’s net positions on bitcoin futures.
“CME futures net positions have fallen 75% over the past five months.”
CME Bitcoin Futures Net Position (USD). Source: Ki Young Ju/X
Meanwhile, U.S. spot ETFs saw net inflows decline on September 18, compared with a $187 million increase the previous day, according to Farside Investors, a U.K.-based investment firm.
US Spot Bitcoin ETF Flow (screenshot). Source: Farside Investors
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