Bitcoin Nears Eight-Month High Amid Market Expectations
Bitcoin's price surged to an eight-month high of $85,248 on Monday, marking its highest levels since January 29. This move has significant implications for various market participants and investors.
The increase in price has resulted in a key breakout at the time of writing, with BTC/USD advancing after setting a weekly close of $81,120 on Sunday. The relative strength index (RSI) indicator is approaching 'overbought' territory at 70, indicating a lack of underlying momentum to support the highs.
US spot Bitcoin ETF investors are nearing their breakeven point near $86,000, with the cost basis currently sitting at $85,638. The largest Bitcoin ETF, BlackRock's iShares Bitcoin Trust (IBIT), did not account for the lion's share of inflows, instead, Fidelity Investments' Wise Origin Bitcoin Fund (FBTC) received $310 million in netflows.
The FedWatch Tool shows that markets now expect two more US Federal Reserve rate hikes in 2026, with a 53% chance of a 0.25% hike at the October meeting. The CME Group's data also indicates a near 40% chance of a third 0.25% hike before the end of the year.