The post Today’s News In Bitcoin – Brave New Coin appeared on BitcoinEthereumNews.com.

Bitcoin is at $58,050, 2.4% down from seven days ago, and yes, still stuck in the same range it has been in since February. Source: BNC Bitcoin Liquid Index Bitcoin investors, fatigued by the prolonged sideways price action, were initially optimistic about a potential bull run triggered by the Federal Reserve’s expected interest rate cuts this month. However, escalating recession fears might yet prompt a deeper market correction wrote Bitfinex analysts this week. They predict that Bitcoin (BTC) could see a drop of 15%-20% if the rate cut coincides with a recession, potentially pushing prices down to the $40,000-$50,000 range. The analysts explained that while rate cuts are generally positive for risk assets, a 25 basis point reduction could signal the start of a typical easing cycle, potentially boosting BTC prices long-term as recession worries diminish. This would indicate the Fed’s confidence in the economic outlook, possibly averting a harsh downturn. Conversely, a more aggressive 50 basis point cut could initially spike BTC prices by 5%-8%, but these gains might be short-lived as recession concerns could quickly negate the rise. On Tuesday, U.S. spot bitcoin exchange-traded funds experienced continued net outflows, marking a significant downturn in investor sentiment. Data from SosoValue revealed that 12 spot bitcoin ETFs saw a collective withdrawal of $287.78 million, the highest since May 1. BlackRock’s IBIT, which leads in net assets, recorded no changes in flows for the day. Grayscale’s GBTC, the runner-up in size, witnessed outflows of $50.39 million. Fidelity’s FBTC saw the most significant withdrawals, with $162.26 million exiting the fund. Both Ark and 21Shares’ ARKB, along with Bitwise’s BITB, also experienced notable outflows, totaling $33.6 million and $24.96 million, respectively. Other ETFs managed by firms like VanEck, Valkyrie, Invesco, and Franklin Templeton reported smaller losses. These substantial outflows occurred against the backdrop…

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Filed under: News - @ September 4, 2024 11:16 pm