Bitcoin Braces for Volatility as Market Awaits Key Economic โData
BUENOS AIRES – Bitcoin is poised forโค aโข period of โฃheightened volatility as investors anticipate a potential interest rate cut and react too significant capital flows, โaccording to market analysts. โTeh cryptocurrency is entering “turbulent waters where each wave can change the course in โseconds,” fueled byโข expectations surrounding โWednesday’s economic announcements and recent surges in both stablecoin deposits and ETF investment.
Recent data reveals a record $6.2 billion in stablecoin inflows to Binance โขon September 8, bringing โthe exchange’s stablecoin reserves to โขapproximately $39 billion. Historically, such peaksโ have foreshadowed increased buying pressure for assets likeโข Bitcoin. This trend was further reinforced on Tuesday, September โข10, when the U.S. Producerโข Price Index (PPI) came inโ lowerโค than expected, bolstering the disinflation narrative and contributing to Bitcoin’s upward momentum.
Carolina Gama,countryโฃ manager for Argentina at Exchange Bitget,emphasized the โimportance of โWednesday’s developments. “In โขcase ofโ confirming the cut, risk assets such as BTC tend to benefit, since lower rates stimulate liquidity and appetite for risk,” she explained to โCriptoNoticias. “In this scenario, Bitcoin could giveโ continuity to its valuation trajectory, consolidating aboveโ vitalโข technical levels and attracting greater institutional interest.”
Gamaโฃ added that Federal Reserve (FED)โ rate โcuts have historically been well-received byโ cryptocurrency โinvestors, creating a more liquid environment and favoring choice assets. “If this dynamic is repeated, BTC could find fertile ground to move towards new โฃmaximums in the short term, especially consideringโข the constant flow of capital observed in the ETFs and the perception that theโฃ asset is consolidated as a relevant alternative in economic transition scenarios.”
The marketโ is currently tracking weekly capital flows into Bitcoin ETFs, as illustrated by data from Socal. The price of Bitcoin is expected to experience โsignificant swingsโข nonetheless of direction, with investors preparingโข for a period of intense volatility.
