Bitcoin’s $120K target is nearing as the Fed decides.

Takeaways from the conference:

• The net 44,000 BTC withdrawals in September reduced the supply available, which could ease the short-term pressure on the market.

• US-listed Bitcoin ETFs grew by $2.2billion, with a daily demand far exceeding the supply.

BitcoinBTCSince Friday, the price of ( has been trading in a tight range of 2.3% as investors wait for Wednesday’s Federal Reserve interest rate announcement. The immediate effect of a cut in interest rates on Bitcoin’s price is still uncertain. However, three independent factors continue to support the BTC prices.

It is critical that the sharp drop in BTC on exchanges affects short-term prices. Glassnode estimated a net withdrawal in September of 44,000 BTC, reversed the large deposit activity seen from July. Due to the limited number of coins available, liquidity in the short term is less, which may limit selling pressures near current price levels.

Bitcoin ETFs growing in demand despite reduced BTC supplies

Some claim that there are 2,96 million BTC on the exchanges, which is more than enough to cover all of the buying. This viewpoint ignores that most of the coins in question aren’t available on order book. Many clients keep Bitcoin deposits on exchanges due to concerns about self-custody Or to take advantage of features such as yield opportunities and reduced fees.

Bitcoin spot exchange-traded fund (ETFs) continue to accumulate and provide additional support for the $115,000 level. The trend is helping to restore investor confidence following gold’s outperformance of 11% since August. US-listed Bitcoin exchange traded funds recorded $2.2 billion during the year. net inflows The daily purchasing pressure is 10 times higher than the new Bitcoins that are mined between Wednesday and Sunday.

Eric Trump CNBC interview On Tuesday, drew the attention of Bitcoin’s special qualities. US President Donald Trump’s son, Eric Trump is personally involved as the founder of Bitcoin mining and treasury company American Bitcoin. Eric Trump claimed that Bitcoin was the future. “greatest asset of our time,” It has been described as a “modern version” of gold that is an effective hedge to the weakness of the real estate market.

Bitcoin may not respond to Fed rate reductions

The bond markets have priced in 96% of the probability that Fed would trim rates to 4.25% From the current 4,5%. Bitcoin’s reaction to Wednesday’s announcement could be modest. The remarks of Fed chair Jerome Powell at the press conference will have a greater impact on whether or not rates continue to trend down. Bitcoin’s upward trajectory towards $120,000 could be hampered if inflation remains a major risk.

A new financial sign emerged in the past week which could indicate greater market tensions. US banks released their quarterly earnings on Monday borrowed Reuters reported that the Fed removed $1.5 billion of its Standing Repo Facility. “tightness in meeting funding obligations.” On Friday, the overnight lending rate also rose to 4.42%. This is the highest level in over two months.

The uncertainty caused gold to surge, reaching a record high on the day. Bitcoin prices could surge past $120,000 despite the Fed’s precise decision regarding interest rates. This is due to the demand for spot ETFs. corporate reserve strategies, and its role as an independent hedge — an advantage reinforced by Eric Trump’s remarks.

This is only a general article and not intended as investment or legal advice. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.