Bitcoin (BTC) made a move toward the $63,000 mark as trading began in Wall Street on September 19, reflecting gains influenced by stock market performance.

Bitcoin’s Price Gains Momentum Alongside Rising Stocks

Recent data from market analysis platforms and TradingView indicated that Bitcoin reached new three-week highs close to $63,500 on Bitstamp.

Optimism surrounding the U.S. financial policy continued following a significant interest rate cut of 0.5% enacted by the Federal Reserve the previous day.

Both equities and gold saw upward trends, with the S&P 500 nearing new record highs, while BTC/USD started to approach its key resistance, closer to its all-time peak recorded in March.

According to trading firm QCP Capital, a notable recovery in the U.S. 2Y/10Y treasury spread has marked increased market optimism, as it shifted from an inversion since July 2022 to a more positive outlook.

QCP also pointed out the Fed’s intentions for additional rate cuts before the year ends.

The S&P 500 and Nasdaq indices have risen over 20% this year, reinforcing market confidence.

“Since September 6th, the S&P 500 has added $3 trillion in market capitalization. Truly remarkable.”

Market responses from Bitcoin traders reflected a positive outlook amidst these developments.

Trader Byzantine General highlighted strong market conditions, while analyst Michaël van de Poppe described the BTC/USD situation as “doing great,” suggesting that traders may consolidate before any further gains.

Monitoring resources indicate increasing resistance just below the $64,000 level, which is becoming a prominent target for BTC following the Fed’s actions.

Institutional Investors Adjust Their Position on Bitcoin

Recent data reveals a notable shift in the behavior of institutional investors regarding Bitcoin amidst mixed trading volumes for U.S. spot Bitcoin exchange-traded funds (ETFs).

Insights shared on social media by Ki Young Ju, the founder of CryptoQuant, indicate a significant reduction in institutional shorts on Bitcoin.

“Institutions are no longer aggressively shorting Bitcoin,” he reported, noting that net positions in CME Bitcoin futures have dropped by 75% in the past five months.

In the ETF sector, net inflows turned negative on September 18, according to United Kingdom-based investment firm Farside Investors, contrasting with the previous day’s positive inflow of $187 million.

Please be aware that this content does not constitute investment advice. Investment activities carry risks, and readers are encouraged to carry out their research when making financial decisions.