"This pause is seen as necessary to absorb profit-taking pressure, reduce short-term leverage, and lay the groundwork for a more stable price base. On the macro side, the most significant event last week was the Federal Reserve's decision to cut interest rates by 25 basis points at its September 18 meeting. This signalled the end of the tightening cycle, but Chair Jerome Powell's cautious remarks that future policy would remain data-dependent tempered market expectations for the pace of easing."
"This steady flow of capital helps absorb circulating supply, reduces selling pressure in the market, and supports Bitcoin's medium-term uptrend. On-chain data further reinforces the positive outlook. According to CryptoQuant and CoinGlass, Bitcoin balances on exchanges are trending lower, reflecting increased long-term holding demand. Net outflows from exchanges are generally considered a bullish signal, as they indicate investors are less willing to sell immediately, instead moving coins into cold storage."
Bitcoin has pulled back into a correction after rebounding from about $107,300 to nearly $118,000. The pause is absorbing profit-taking, reducing short-term leverage, and helping form a more stable price base. The Federal Reserve cut interest rates by 25 basis points on September 18, signaling the end of tightening, while Powell’s data-dependent stance tempered expectations for rapid easing and contributed to Bitcoin’s stall. Institutional inflows into Bitcoin ETFs have exceeded $22 billion, helping absorb circulating supply and support the medium-term uptrend. Exchange balances are declining, SOPR remains above 1, and miner issuance fell after the 2024 halving; hashprice and energy costs remain key risks.
Read at London Business News | Londonlovesbusiness.com
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