- Major cryptocurrencies gained strongly over the past week, with Bitcoin up 3%, Ethereum 4%, XRP 8% and Solana surging 14% amid growing institutional adoption.
- US Bitcoin ETFs attracted US$1.3 billion in net inflows this week after previous outflows, with BlackRock’s fund now holding 3.59% of all Bitcoin supply.
- The Federal Reserve is expected to cut interest rates by 25 basis points on 17 September, which could provide further support for crypto markets.
- Glassnode analysts warn Bitcoin faces a critical test between US$110K-$116K, with profit-taking pressuring prices despite strong derivatives support.
The crypto market is starting to gain momentum, with a quick look at CoinMarketCap showing a sea of green, with many coins trading in positive territory. Over the past week, Bitcoin (BTC) gained 3%, Ethereum (ETH) 4%, XRP (XRP) 8% and Solana (SOL) jumped 14%.
There are also encouraging developments in the sector: countries are slowly adopting a Bitcoin reserve strategy (and sometimes a broader altcoin strategy), US altcoin exchange-traded funds (ETFs) are edging closer, and the industry is becoming more intertwined with traditional finance.
The US Federal Reserve is also expected to lower interest rates on 17 September. According to a Reuters report, a 25-basis-point cut is almost certain, with a poll of 107 economists showing broad agreement – and a second cut expected later this year.
Related: Avalanche Foundation in Talks to Launch $1B Crypto Treasury Firms in U.S.
Market Uncertainty Ahead, Say Analysts
But not everyone is convinced that it’s only smooth sailing from here. In a Glassnode report, aptly named “Market at a Crossroad”, the analysts warned that profit-taking and fading ETF flows “weigh on momentum”.
While it’s true that there has been some profit-taking in early September, the latest data from Farside Investors actually shows that interest in the US spot Bitcoin ETFs remains strong.
Following combined net outflows of US$383 million (AU$575 million) on Thursday and Friday of last week, the US funds attracted net inflows of US$1.3 billion (AU$1.95 billion) in the four trading days so far this week.
The US spot ETFs now hold 6.2% of all Bitcoin, with BlackRock still dominating. Their iShares Bitcoin Trust (IBIT) holds 3.59% of all BTC – valued currently at US$86.96 billion (AU$130.56 billion).
Crucial for Bitcoin to Hold Above US$114K
Regardless, according to Glassnode, the Bitcoin market is now caught in a tug-of-war between profit-taking and fading ETF inflows, leaving US$110K–US$116K (AU$165K–AU$174K) as the key battleground.
On-chain liquidity is slipping, but futures and options activity are providing balance and preventing sharper drawdowns. The analysts note that reclaiming and holding above US$114K (AU$171K) could serve as a strong signal to restore confidence and attract fresh inflows.
On the other hand, a break lower risks testing US$108K (AU$162K) – and potentially even US$93K (AU$139K). As they put it, the market is “at a crossroads”, with derivatives support holding for now but “broader demand must strengthen to fuel the next sustained rally”.
At the time of writing, BTC trades at US$115,217 (AU$172,948).
Related: Prediction That Bitcoin Could Hit A$2 Million By 2035 “Pretty Conservative”, Says Swyftx Analyst
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