Bitcoin Reaches $58,000 as Tech Stocks and Asian Markets Rally

TLDR:

Bitcoin surpassed $58,000 amid tech stock rallies and Asian market gains
US spot Bitcoin ETFs saw outflows, with Ark Invest’s ARKB losing $54 million
SUI token outperformed, rising 16% after Grayscale’s Sui Trust announcement
AI tokens gained as OpenAI plans to raise $6.5 billion at $150 billion valuation
Bitcoin’s indicators suggest potential for reaching new all-time high soon

Bitcoin’s price surged past $58,000 on Thursday, September 12, 2024, riding a wave of positive momentum in tech stocks and Asian equity markets. This move represents a significant milestone for the leading cryptocurrency, which has been experiencing volatility in recent months.

The price increase coincided with gains in major U.S. technology stocks, with companies like Nvidia, Microsoft, Google, and Apple all seeing notable rises. This tech rally spread to Asian markets, with Japan’s Nikkei 225 index breaking a seven-day losing streak.

Despite the price surge, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced outflows on Wednesday, breaking a two-day streak of inflows. Ark Invest’s ARKB product saw a particularly large outflow of $54 million, contributing to a total outflow of $43 million across Bitcoin ETFs.

In the broader cryptocurrency market, the layer-1 blockchain Sui (SUI) outperformed others, with its token price increasing by over 16%. This dramatic rise is likely tied to Grayscale’s recent announcement about opening the Grayscale Sui Trust. The trust’s structure has created an interesting dynamic, with the market potentially setting up for a Grayscale discount.

Artificial intelligence-related tokens also saw modest gains following reports that OpenAI is planning to raise $6.5 billion at a $150 billion valuation. Tokens like NEAR Protocol (NEAR) and the Artificial Superintelligence Alliance’s FET saw increases of 6% and 9% respectively.

Looking at Bitcoin’s market indicators, some analysts suggest that the cryptocurrency might be poised for further gains.

A popular crypto analyst pointed out a bullish divergence on Bitcoin’s trading chart, indicating a possible price increase in the coming days. This divergence could potentially push Bitcoin towards a new all-time high.

Additional data from CryptoQuant shows that Bitcoin’s exchange reserve is dropping while stablecoin supply is increasing, which typically signals a bullish outlook for Bitcoin.

Bitcoin’s Next Bull Run?

“Decreasing #Bitcoin reserves and rising stablecoin reserves indicate a bullish outlook for Bitcoin. As the market supply tightens and buying power builds, we could be on the verge of a price rally.” – By @OnchainTarek

Link 👇https://t.co/frUAfdSBrk pic.twitter.com/4fxB9cowf1

— CryptoQuant.com (@cryptoquant_com) September 11, 2024

The Bitcoin Rainbow Chart also indicates that the current price is in the “Basically a Fire Sale” zone, suggesting that investors might consider buying at these levels.

However, not all indicators are pointing towards continued growth. Bitcoin’s fear and greed index is currently in the “greed” position, which sometimes precedes a price correction.