Bitcoin (BTC) 
$93,777 drew attention again with a limited price recovery on the first day of the week after a challenging period at the beginning of September. Despite a 7% drop at the start of this month, Bitcoin’s price showed a slight increase over the weekend and early hours of today, trading above $54,800 with a 0.65% rise in the last 24 hours at the time of writing.
Key Figures Start Closing Short Positions
Arbelos Markets’ Trading Director Sean McNulty attributed Bitcoin’s price rise partly to key figures closing their short positions. A notable example is BitMEX co-founder Arthur Hayes, who recently closed his short positions, contributing to the price increase.
Additionally, political developments seem to have played a role in Bitcoin’s recent rise. Republican presidential candidate Donald Trump, known for his supportive stance on cryptocurrencies, saw a significant recovery in polls, with his winning probability exceeding 50%. McNulty suggested this might have supported market sentiment towards Bitcoin. Furthermore, there is an increase in demand for options hedging, indicating that investors are preparing for potential volatility ahead of the debate between Trump and Democratic Vice President Kamala Harris on Tuesday. However, Harris has not yet clearly stated her stance on cryptocurrencies.
Spot Bitcoin ETFs Experience Significant Outflows
Meanwhile, the anxious wait in global markets continues to exert pressure on Bitcoin. Data compiled by Bloomberg reveals significant outflows from spot Bitcoin exchange-traded funds (ETFs) in the US, with investors withdrawing approximately $1.2 billion from 12 spot Bitcoin ETFs in the seven days ending September 6. This figure marks the longest net outflow series for these funds since their inception earlier this year. The outflows coincide with a turbulent period in global markets, where fears about US economic growth have led to declines in stocks and commodities.
Orbit Markets’ co-founder Caroline Mauron, a provider of liquidity for cryptocurrency derivatives trading, commented that Bitcoin might remain within its recent trading range of $53,000 to $57,000 ahead of the US Consumer Price Index (CPI) data release on Wednesday. Market participants believe that the inflation trend will significantly impact the Fed’s monetary policy and the broader economic outlook, making this upcoming economic data critical for clarifying Bitcoin’s trajectory.
The cryptocurrency market continues to show cautious behavior as investors brace for significant political and financial developments that could lead to more price volatility amid ongoing economic uncertainties. At the time of writing, BTC is trading at $54,806 with a 0.73% rise in the last 24 hours, while the total market value of the cryptocurrency market stands at $1.94 trillion, below the $2 trillion mark.
