Bitcoin (BTC) 'Floundering' in a Trading Range... Funds Outflow Even as Interest Rate Fears Subside

▲ Bitcoin (BTC)

As US Treasury yields continue to rise, pressuring the market, Bitcoin (BTC) remains trapped in a narrow trading range. Major altcoins such as Ethereum (ETH), XRP, and Dogecoin (DOGE) have also seen their upward momentum slow, putting their support levels to the test.

Benzinga reported on October 2nd that even though the probability of the Federal Reserve (Fed) raising interest rates in October plummeted to around 30%, Bitcoin has failed to establish a clear direction and continues to trade sideways. In the futures market, 70,853 traders were liquidated over the past 24 hours, resulting in the closure of positions totaling $193.49 million.

The outflow of funds from institutional investors is also acting as a burden. According to data compiled by virtual asset statistics platform SoSoValue, a net outflow of $148.7 million occurred from US Bitcoin spot Exchange Traded Funds (ETFs) on Wednesday alone. Ethereum spot ETFs also recorded a net outflow of $59.6 million on the same day, indicating selling pressure.

In the altcoin market, upward momentum is mixed. While large-cap coins like Ethereum, XRP, and Dogecoin are focusing on defending support levels amid liquidity pressure from rising Treasury yields, some projects such as Bitway, Stacks, and Midnight stood out with high gains over the past 24 hours.

Market experts analyze that the easing expectation of a lower probability of interest rate hikes and the liquidity tightening factor of surging Treasury yields are in a tense standoff. For Bitcoin to break out of its current trading range and kickstart a full-fledged October rally, the stabilization of outflows from spot ETFs and a recovery in overall altcoin trading volume must precede it.

Amid the burden of Treasury yields, Bitcoin continues its narrow sideways movement, testing the fundamental strength of major altcoins. Market attention is focused on whether it can overcome the impact of over $100 million in ETF outflows, break through the upper bound of its trading range, and prove a seasonal bull market.

[Article Key Summary]

-Bitcoin (BTC) traded sideways, trapped in a narrow range, despite the probability of a Fed rate hike in October plummeting to 30%.

-Over 70,000 traders were liquidated in 24 hours, with $193.49 million evaporated, and a net outflow of $148.7 million occurred from Bitcoin spot ETFs.

-While Ethereum (ETH), XRP, and Dogecoin (DOGE) faced the test of rising Treasury yields, some altcoins like Midnight and Stacks stood out.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*