Bitcoin Price Prediction as Spot BTC ETF Inflows Slow Amid Bitget Hack

Bitcoin price traded near $84,700 on Sept. 25 after retreating from Monday’s high above $87,000. The pullback coincided with rising U.S. Treasury yields and slower spot Bitcoin ETF inflows. Bitget’s $351.6 million security breach also added another risk factor for crypto traders.

CoinMarketCap showed BTC recovering slightly from its Sept. 24 close near $84,379. Bitcoin therefore remained below this week’s peak but had not completed four straight declining sessions. The supplied chart places $82,525 as the next major technical area to watch.

Spot Bitcoin ETF Inflows are Slowing

American investors have continued buying more Bitcoin this week. Data shows that these funds added over $190 million on Thursday, bringing the cumulative inflows to over $57.4 billion.

However, there are signs that the momentum is slowing. These funds added over $998 million on Monday, $714 million on Tuesday, and $346 million on Wednesday.

The same is happening monthly. These funds have added $2.5 billion in assets this month, down from $3.5 billion last month.

On the positive side, these inflows have led to a positive inflows for the year, erasing the substantial gains experienced earlier. For example, these funds suffered $4.5 billion in outflows in June and $2.43 billion in May this year.

The falling momentum has coincided with the ongoing woes in the bond market. Data shows that US ten-year yield jumped to a 20-year high of 5.12%, while the 30-year rose to 5.4%. Bond yields in other countries like Germany and France have continued rising this week.

Crude Oil Prices are Soaring

At the same time, crude oil prices have remained at an elevated level, with Brent and the West Texas Intermediate (WTI) rising to $106 and $93, respectively. Higher oil prices have continued because of the rising odds that the US-Iran war will continue in the foreseeable future.

The rising oil prices have pushed gasoline and diesel costs to the highest levels in years. Diesel has jumped to a record high of $6.5, and this rally may continue because of the refining challenges in key countries. As a result, there is a likelihood that the Federal Reserve and other central banks will decide to hike interest rates by 0.25% later this year.

Meanwhile, there are concerns about the security of crypto tokens after Bitget, a major crypto exchange suffered a big hack. The company reported an estimated $351 million in unauthorized transfers from its wallets and then temporarily suspended withdrawals. In a statement, Gracy Chen, the CEO, said that user funds were safe and were covered within the Bitget User Protection Fund, which has over $464 million.

In the long term, hover, the hack will not have a big impact on Bitcoin and other coins since the industry has suffered worse. For example, companies like Bybit, Poly Network, LuBian, and FTX have all been hacked before. Bitcoin also survived the collapse of companies like FTX, Mt. Gox, and Terra.

Bitcoin Price Technical Analysis

The daily chart shows that Bitcoin has pulled back in the past few days. It has retreated from a high of $87,430 on Monday to the current $84,180.

Bitcoin is about to retest the crucial support level of $82,525, its highest level in May and September this year. A break-and-retest pattern is one of the most common bullish continuation sign in technical analysis.

Bitcoin has remained above the Strong pivot reverse level of the Murrey Math Lines tool. It also remains above the Supertrend indicator. Therefore, there is a likelihood that the price will bounce back, possibly to the ultimate resistance level of $87,500. A drop below the support level of $80,000 will invalidate the bullish outlook.

This article is for informational purposes only and does not constitute financial or investment advice. Technical projections may not materialize.