Bitcoin price held steady above $60,000 on Thursday, Aug. 29, despite two consecutive days of outflows from its exchange-traded funds (ETFs). Data reveals that Bitcoin ETFs lost $105.19 million in assets on Wednesday, following a $127 million loss the previous day. These funds have accumulated $17.85 billion in assets, primarily from institutional investors.

Bitcoin has several catalysts that could push it higher in the long term. One notable factor is the decrease in the amount of coins held in exchanges, reaching its lowest point this year. According to recent data, exchanges held 2.38 million coins on Aug. 29, down from 2.4 million on Aug. 27 and last month’s high of 2.50 million.

Falling Bitcoin reserves often indicate low liquidity in the market and suggest that most investors are no longer moving their coins from wallets to exchanges, a key step in liquidation.

Another factor influencing Bitcoin is the performance of the US dollar and the growing US public debt. The US dollar index, which measures the price of the greenback against a basket of currencies, fell to $101.50, down over 4.7% from its highest level this year. This decline follows hints from Federal Reserve Chief Jerome Powell about possible rate cuts in the September meeting.

Additionally, the US public debt has continued rising, reaching unsustainable levels. The national debt has jumped to over $35.2 trillion, or 123.2% of the GDP, with annual interest on this debt soaring to over $920 billion.

Globally, liquidity has reached a record high of $95 trillion. This trend may drive more institutions and retail investors to consider alternatives like Bitcoin and gold.

The options market also points to a potential Bitcoin rebound, possibly reaching $90,000 later this year. Moreover, the Bitcoin funding rate has dropped to -0.0011%, indicating further upside potential.

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