Bitcoin Surges to Eight-Month High Despite Macro and Crypto Headwinds
The price of Bitcoin surged to an eight-month high on Monday morning, reaching just over $87,000. This impressive run came despite a week's worth of negative news in the macro and crypto industries.
Last week, the US Senate failed to advance the CLARITY Act, a key crypto market structure bill, after Republicans lost their vote. The following day, the Federal Reserve hiked interest rates for the first time in over three years, causing Bitcoin's price to decline. However, the bulls showed resilience and initiated a more impressive leg up on Friday.
The rally gained momentum on Monday with data from SoSoValue showing that $998.95 million entered Bitcoin funds on that day alone. This made it the single-best performance in nearly a year. CryptoQuant's analysis also shed light on the situation, revealing that spot demand worked in tandem with ETF inflows to result in well over $340 million in shorts getting wrecked in a classic short squeeze.
CryptoQuant predicted that 'BTC needs ETF flows to follow through to push through this area.' However, they noted that the Coinbase Premium Gap has turned negative, suggesting U.S. spot demand has cooled. This is why all eyes are on the U.S. session to see whether ETFs can deliver another strong day.