Bitcoin Price Analysis: BTC Taps $116,000 As ETF Inflows Ignite Bullish Sentiment
Bitcoin (BTC) Briefly crossed the $116,000 mark over the weekend, managing to hold above $115,000. Sentiment around the flagship cryptocurrency has turned positive in recent sessions, with expectations of a rate cut by the Federal Reserve growing.
BTC dipped to an intraday low of $115,267 on Saturday but rebounded to reclaim $116,000 before moving to its current level.
Traders Expect New All-Time Highs
Bitcoin (BTC) moved towards a key price target on Saturday as analysts predicted a move to fresh all-time highs. According to data from TradingView, the flagship cryptocurrency reached an intraday high of $116,833 on Friday and $116,378 on Saturday. Bitcoin Futures went even higher, reaching $117,320, closing a major gap from a prior weekend. Crypto investor and entrepreneur Ted Pillows stated on X,
Analysts also noted that all-time highs were back on the radar over the weekend, with several on-chain indicators suggesting a move higher. Keith Allen, founder of Material Indicators, stated that $124,500 was not the top for Bitcoin.
“Here's what you need to know for the weekend. $124.5k is not the top for BTC. Why? Because there is simply too much institutional demand, and that demand is growing. 25bps cut is baked in for September 17th. There will be volatility, and things are going to start getting spicy.”
Financial Institutions To Ramp Up Bitcoin (BTC) Allocations
Wall Street veteran and macro analyst Jordi Visser predicts that US financial institutions will increase their Bitcoin allocations before the end of the year. Visser stated during a conversation with Anthony Pompliano,
“Between now and the end of the year, the allocations for Bitcoin for the next year from the traditional finance world are going to be increased. I think Bitcoin’s allocation number will go higher across portfolios. That is going to happen.”
Visser expects traditional financial institutions to bolster their BTC allocations for the final quarter, with market participants debating if BTC’s price will push higher. Visser’s comments come after a survey by Coinbase and EY-Parthenon suggested strong institutional interest in the broader crypto market. The survey revealed that 83% of institutional investors planned to increase their crypto allocations in 2025. However, Visser was hesitant to make a prediction, but added that he liked the way the charts were playing out.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) price action has been muted over the weekend, with the flagship cryptocurrency holding its position above the $115,000 level. The price briefly crossed $116,000, reaching an intraday high of $116,833 on Friday. BTC is marginally up during the ongoing session, trading just below $116,000. The close above a key level comes as Wall Street rekindled its interest in risk assets, signaling renewed investor confidence ahead of a crucial week for crypto and traditional markets.
A cooling labor market has renewed expectations of a rate cut by the Federal Reserve, boosting investor appetite for risk assets like Bitcoin. The prospect of a weak US dollar and lower borrowing costs has renewed investor appetite for BTC and spot Bitcoin ETFs. Spot Bitcoin ETFs reported weekly net inflows of $2.3 billion for the week ending September 12. iShares Bitcoin Trust (IBIT) led the inflows with $1.04 billion, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $849 million. Meanwhile, ARK21 Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) registered combined inflows of $320 million. Overall, spot Bitcoin ETFs reported net inflows of $2.57 billion in September,
Continued inflows could give rise to FOMO sentiment, which could drive prices even higher as the Federal Reserve’s anticipated rate cut looms. Analysts and economists expect the Federal Reserve to cut interest rates by 25 bps on Wednesday. Markets will be waiting with bated breath for Fed Chair Jerome Powell’s post-FOMC speech. According to crypto commentator Joe Consorti, BTC has historically benefited from rate cuts.
“Last year, following the Fed’s first 25-bps rate cut, BTC rose 14% throughout October. It rose 54.17% from October 1st through December 31st as further easing took place. Q4 is shaping up nicely for the orange coin. Bitcoin has historically risen 29.23% in October. That would imply a price of $150,000. Time will tell.”
BTC started the week in positive territory, rising nearly 1% on Monday and settling at $112,072. However, it lost momentum on Tuesday, dropping 0.47% to $111,549 after reaching an intraday high of $113,292. Bullish sentiment intensified on Wednesday as BTC rose over 2% to cross $113,000 and settle at $113,983. Buyers retained control on Thursday as the price continued pushing higher, rising 1.37% to reclaim $115,000 and settle at $115,540.
Source: TradingView
The flagship cryptocurrency faced volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose 0.49% to cross $116,000 and settle at $116,106. BTC lost momentum on Saturday, registering a marginal decline to slip below $116,000 and settle at $115,977. The current session sees the price marginally up, trading just above $116,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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