Bitcoin (BTC) saw a rebound in price on Monday following a significant liquidation of long traders last week. The leading cryptocurrency surged by around 2% in the last 24 hours, trading at approximately $114,210 during the mid-North American session on September 29.
Altcoins like Ethereum (ETH) and Binance Coin (BNB) also experienced a rally, leading to a 2.1% increase in the total crypto market cap to around $3.94 trillion at the time of writing.
Top Reasons Behind Bitcoin’s Price Rebound Today
Whales’ Change of Heart
A recent report by CoinShares revealed that Bitcoin’s investment products saw a net cash outflow of around $719 million last week, with significant outflows from spot BTC ETFs amounting to $902 million.
However, positive news emerged on Monday with Michael Saylor’s Strategy announcing the acquisition of 196 BTC for $22 million. Additionally, Capital B increased its Bitcoin holdings by 12 BTC, bringing its total to 2,812 coins.
Gold Rush as Inflation Hedge
The bullish sentiment in the Bitcoin market was partly driven by a surge in the price of Gold on Monday. TradingView data shows that Gold has surged over 15% since mid-August, reaching a new all-time high of approximately $3,833 per Ounce.
This surge in Gold prices has raised expectations for a potential Bitcoin price increase in the near future. Additionally, historical data suggests that Bitcoin tends to perform well in October.
Is Bitcoin’s Price Increase Sustainable?
According to crypto analyst Benjamin Cowen, Bitcoin’s price is expected to continue rising in the coming weeks, potentially at the expense of altcoins. However, medium-term price movements could be volatile, especially with the upcoming $1.6 billion third distribution of FTX on September 30.