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BTC Rallying as USD Drops

Bitcoin prices are pushing higher this week with digital assets seemingly taking advantage of a dovish shift in Fed expectations. Weaker PCE data on Friday and softer manufacturing data on Monday have seen traders increasing their rate-cut expectations for September, weighing on USD. Against this backdrop we’ve seen a pickup in risk appetite, helping lift demand for crypto, with BTC fast approaching a test of the April highs, just ahead of the all-time highs around 74,325.
 

ETF Demand Picking Up Again

Another key driver of the move higher this week has been an uptick in demand for spot-BTC ETFs. Industry data reflects a 15-day winning streak for ETF inflows with Monday recording a $105 million intake. ETFs are now enjoying their second longest streak of net-inflows, suggesting that bullish sentiment is building once again in the market.
 

US Data on Watch

Looking ahead this week, focus will be on incoming US data with the ADP employment reading due today, unemployment claims tomorrow and the headline NFP set on Friday. If we see fresh weakness in these readings, near-term Fed easing expectations should lift, adding further support for Bitcoin here.
 

Technical Views

BTC

The rally in BTC has seen the market breaking back above the 69,355 level and the bear channel highs. While above here and with momentum studies bullish, the focus is on a fresh test of YTD highs around 74,325. Above, 81,940 is the broader bull target.

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