Bitcoin Market Update: Price Volatility and ETF Inflows Amid Cautious Sentiment

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• CoinDesk 20 Index: 1,817.62 (+2.4%)
• Bitcoin (BTC): $57,160 (+3.54%)
• Ether (ETH): $2,349.98 (+1.54%)
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Bitcoin has been showing volatility, fluctuating around the $57,000 mark during the European morning hours, with a significant gain of approximately 3% over the last 24 hours. Despite this upward movement, it still remains roughly 3% lower for the month of September and more than 20% below its all-time high of $73,000 reached in March. The overall digital asset market has seen a modest increase of about 2.35%, as indicated by the CoinDesk 20 Index.

In a noteworthy trend, Bitcoin exchange-traded funds (ETFs) recorded net inflows for the first time in over a week on Monday, amassing an impressive $28.7 million. However, NYDIG has cautioned that there are limited near-term catalysts for Bitcoin’s price movement. The firm highlighted that September is historically a weak month for Bitcoin prices, but there is optimism as October tends to be one of the strongest months for the cryptocurrency.

Furthermore, trading data from derivatives exchange Deribit reveals a preference among traders for bearish puts over bullish calls for both BTC and ETH. This indicates ongoing concerns regarding potential price weakness in the near term. QCP’s market insights team expressed on Telegram that, “Given the velocity of last week’s decline, the market remains cautious about downside risk.” They also noted that risk reversals leading up to October are still skewed towards puts for both Bitcoin and Ethereum.

This cautious market sentiment may be influenced by historical patterns, which suggest that recessions and risk aversion often follow the initiation of a Federal Reserve rate-cutting cycle. The central bank is widely anticipated to reduce rates by 25 basis points in the upcoming meeting, which could result in any price rallies being short-lived until after the Fed’s decision.

In a strategic move, blockchain data provider Nansen has acquired the staking platform StakeWithUs. CEO Alex Svanevik aims to diversify beyond data provision into offering investment services for both institutions and retail traders. While the specific purchase price has not been disclosed, a company representative indicated that it was a seven-figure sum. StakeWithUs, supported by Singapore’s innovation initiative SGinnovate, specializes in staking across various blockchains. Following this acquisition, Nansen plans to provide non-custodial staking for over 20 different assets, including SOL, SUI, OSMO, and ATOM. Svanevik stated, “By enabling staking within Nansen, we are not only expanding our service offerings but also enhancing our support for the blockchain ecosystems we integrate with.”

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