Bitcoin charges past $65,000 on September 26, 2024, reaching its highest price level since early August as a confluence of global macroeconomic catalysts sends the cryptocurrency market into a decisive rally. The flagship digital asset surges approximately 3% within 24 hours, trading at $65,181 at press time, driven by China’s sweeping economic stimulus package and continued institutional appetite through U.S. spot Bitcoin ETFs.
TL;DR
- Bitcoin surpasses $65,000 for the first time since August 2, 2024
- China’s central bank announces aggressive monetary stimulus, including rate cuts and liquidity injections
- U.S. spot Bitcoin ETFs record $365.7 million in daily inflows, led by BlackRock’s IBIT
- Over $154 million in short positions liquidated within 24 hours
- More than 90% of BTC holders currently sit in profit
China’s Policy Bazooka Fires Up Risk Assets
The People’s Bank of China delivers what analysts call a “policy bazooka” — a comprehensive set of monetary easing measures that includes interest rate cuts, reductions in bank reserve requirements, and direct liquidity injections into the financial system. The stimulus plan aims to revitalize China’s slowing economy, but its ripple effects extend far beyond traditional markets.
Bitcoin, often described as a barometer for global liquidity conditions, responds immediately. The asset breaks through the psychologically significant $65,000 resistance level as traders interpret China’s monetary expansion as a de facto green light for risk-on positioning across all asset classes. The correlation between Bitcoin and global liquidity conditions strengthens, reinforcing the narrative that BTC functions as a hedge against monetary debasement.
Federal Reserve rate cuts earlier in the week add fuel to the fire. The combination of easing from the world’s two largest economies creates a dovish tailwind that propels not just Bitcoin but the entire crypto market higher. Ethereum gains 5% to hold above $2,600, while altcoins like Solana and Binance Coin post 7% and 6% gains respectively.
Spot Bitcoin ETFs See Fifth Consecutive Day of Inflows
U.S. spot Bitcoin ETFs extend their winning streak to five consecutive days of net positive inflows, accumulating $496.7 million since the prior Wednesday. On September 26 alone, the funds attract $365.7 million in fresh capital. BlackRock’s iShares Bitcoin Trust (IBIT) leads the charge, continuing its dominance as the preferred vehicle for institutional Bitcoin exposure.
The sustained ETF inflow pattern signals a structural shift in how traditional investors access Bitcoin. Rather than navigating the complexities of self-custody or crypto exchanges, institutions increasingly channel capital through regulated, exchange-traded products. This trend creates a steady demand floor that supports Bitcoin’s price even during periods of broader market uncertainty.
Ethereum ETFs also participate in the inflow trend, registering $43.23 million in net inflows on the same day. However, the SEC delays its decision on approving options trading for certain Ethereum ETFs, introducing a note of regulatory caution into an otherwise euphoric market.
Liquidations and Profit-Taking Signals Emerge
The rapid upward movement triggers significant liquidations in the derivatives market. Over $154 million in short positions are wiped out within 24 hours, amplifying the price surge as forced buying cascades through leveraged positions. The liquidation cascade demonstrates the persistent vulnerability of bearish traders in a market that continues to find support at higher levels.
However, on-chain data from IntoTheBlock reveals that more than 90% of Bitcoin holders are currently in profit — a statistic that historically precedes periods of increased selling pressure. Whales reportedly offload $1.28 billion worth of BTC during the rally, suggesting that large holders use the price strength to reduce exposure. This dynamic creates a potential headwind for sustained upside, as profit-taking from long-term holders can offset the buying pressure from new ETF-driven demand.
Analysts Set Sights on $70,000
Research firm 10x Research issues an optimistic note, projecting Bitcoin could reach $70,000 within two weeks based on the current momentum and favorable macroeconomic conditions. The firm states that “the likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded,” pointing to the convergence of Chinese stimulus, Federal Reserve easing, and growing institutional adoption as a powerful trifecta for Bitcoin’s price discovery.
Market sentiment also receives a boost from the political sphere. Vice President Kamala Harris publicly endorses U.S. leadership in blockchain technology and artificial intelligence, signaling a potentially more crypto-friendly regulatory posture from the current administration. While specific policy proposals remain sparse, the rhetorical shift from the executive branch marks a notable change in tone.
Why This Matters
Bitcoin’s decisive break above $65,000 represents more than a round-number milestone. It demonstrates the asset’s sensitivity to global monetary policy shifts and validates the thesis that institutional vehicles like spot ETFs create persistent demand floors. With both the Federal Reserve and China’s central bank simultaneously easing monetary conditions, Bitcoin enters what many analysts describe as a favorable macroeconomic environment heading into the final quarter of 2024. The interplay between whale profit-taking and ETF inflows determines whether this rally sustains or retraces in the weeks ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, including the potential for total loss of capital. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.
china firing the policy bazooka with rate cuts and liquidity injections. BTC responding instantly because its a global liquidity barometer
china fires the bazooka and BTC responds within minutes. when both the fed and PBOC are easing simultaneously, risk assets have nowhere to go but up
IBIT leading ETF inflows with $365.7M in a single day. BlackRock is basically a BTC accumulation machine at this point
IBIT with $365.7M in a single day while 90% of holders are in profit. blackrock is essentially operating a BTC accumulation flywheel at this point
90% in profit and still accumulating. blackrock isnt trading they are stacking. retail seller supply is basically exhausted
bit_depth 90 percent in profit and still accumulating is the most bullish stat from this whole rally. supply is genuinely drying up
yuhao_c supply drying up at 90 percent in profit is bullish but also means weak hands already sold. next correction the remaining holders have strong conviction
bit_depth retail seller supply exhausted is a strong claim. long term holders redistributed plenty during this pump, glassnode data showed it
IBIT alone accumulated more BTC than most miners produce in a quarter. ETF flows are the story now, not the daily price
that 90% in profit stat was misleading then and still is. on-chain cost basis varies wildly depending on which cohort you measure
both the Fed and PBOC easing at the same time. when did BTC ever have this kind of dual tailwind? 90% of holders in profit
When both Fed and PBOC ease at the same time, BTC has nowhere to go but up. This is unprecedented coordination.
CryptoMacro dual easing from Fed and PBOC simultaneously is genuinely rare. last time anything close happened was post-covid 2020. BTC is the liquidity sponge
macro_synch_ last time fed and pboc eased simultaneously was post covid 2020. BTC went from 9k to 60k in 6 months. not saying that repeats but the liquidity setup is identical
pboc_realist_ last time Fed and PBOC eased simultaneously was post-covid 2020. BTC went 9k to 60k in 6 months. not saying it repeats but the setup rhymes
CryptoMacro name one other time both the Fed and PBOC were easing simultaneously. the 65K breakout was just liquidity finding a home
154M in shorts liquidated on the china news. that squeeze fuel was a big part of the pump to 65181. bears got cooked
both fed and pboc easing at once and people still debated if it was organic. 154M in short liquidations says it was forced
154M in shorts liquidated in 24 hours on top of 365.7M IBIT inflows. that squeeze was mechanical, not organic demand. still bullish but know what youre buying into
Sang-woo P. calling it mechanical not organic is the right framing. 154M shorts liquidated is forced buying not new demand. bullish short term but fades
dfg_skeptic_ calling the pump mechanical not organic is correct. 154M in short liquidations is forced buying. the real demand arrived after the squeeze when retail FOMO kicked in
Hyunjae P. 154M short liquidations on top of 365.7M IBIT inflows. one is forced buying the other is structural. both push price but only one sustains
Sang-woo P. 154M short liquidations on top of 365.7M IBIT inflows. one is forced buying, the other is structural demand. both push price up but only one sustains
PBOC cutting reserve ratios and rates simultaneously while the fed was still QE adjacent. that kind of dual liquidity injection only happens once a decade maybe
cn_printer_ the PBOC bazooka plus IBIT pulling $365.7M in the same session. institutional and state-level liquidity both flowing into BTC simultaneously
liquidity_injector dual liquidity from PBOC and IBIT at the same time. when both the printers go brrr risk assets moon, this is just macro 101
BlackRock’s IBIT is basically a BTC accumulation machine at this point. $365M in one day is insane.
IBIT pulling 365.7M in a single day alongside PBOC stimulus. institutional and macro liquidity hitting BTC at the exact same time