Bitcoin (BTC) Bulls Regain Momentum as Demand From Institutional Investors Skyrockets

Following last week’s signal from Fed chair Jerome Powell of a possible interest rate cut before the end of this year, Bitcoin (BTC) bulls have regained

After a signal from Fed chair Jerome Powell last week of a possible interest rate cut before the end of this year, Bitcoin (BTC) bulls have regained momentum.

After being trapped in a bearish outlook in the past four weeks, the flagship coin pumped over 10 percent last week to close slightly above $64k. As a result, Bitcoin price continues to follow gold’s price action closely despite the fears of potential capitulation in August and September.

Rising Institutional Demand

The demand for Bitcoin among institutional investors significantly rebounded in the past few days after registering low interest in the first few weeks of August. According to the latest market data, the US spot Bitcoin ETFs registered a net cash inflow of more than $550 million in the past two weeks, led by BlackRock’s IBIT and Fidelity’s FBTC.

Despite the notable rise in Bitcoin demand from institutional investors, retail traders have not yet shown similar interest akin to previous bull cycles. However, the declining fear of further crypto capitulation could largely attract more retail traders ahead.

Moreover, Bitcoin’s fear and greed index surged to 55 percent, denoting greed, as the underlying value jumped to $64k.

What’s Next for BTC Price?

More than 115 days since the fourth Bitcoin halving occurred, it is safe to assume that the highly anticipated parabolic rally is on the horizon. According to popular crypto analyst alias PlanB, Bitcoin price will peak in 2025 based on the stock-to-flow (S2F) model.

From a technical standpoint, Bitcoin price has consistently closed above the daily 50 and 200 Moving Averages (MAs), despite their recent death cross. With the daily Relative Strength Index (RSI) above the 50 percent level again since the August 5 crash, the bulls have significantly regained control.

According to a popular crypto analyst Benjamin Cowen, Bitcoin price is yet to reach the peak of the current bull cycle compared to previous cycles. In this regard, the crypto analyst expects Bitcoin dominance to continue rising against altcoins before the anticipated reversal in 2025.

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