Manish Chhetri
FXStreet
Bitcoin (BTC) is testing the $116,000 level again on Tuesday. A firm close above this level would suggest gains toward $120,000. Institutional demand is growing, with over $260 million in BTC spot Exchange Traded Funds (ETF) inflows on Monday and firms like Strategy adding BTC to their reserves. Traders’ attention now turns to the Capitol Hill event, where industry leaders, such as Michael Saylor and Fred Thiel, will promote the BITCOIN Act.
Prominent crypto leaders, including Strategy co-founder Michael Saylor and Marathon Digital CEO Fred Thiel, will gather on Tuesday at a Capitol Hill roundtable to promote the BITCOIN Act.
The BITCOIN Act, reintroduced by Senator Cynthia Lummis in March, proposes that the US government purchase 1 million BTC over five years — a move that, if passed, could boost adoption, improve regulatory clarity, and strengthen the long-term bullish outlook for Bitcoin and position the US as a leading global hub for cryptocurrencies.
Despite BTC facing slight rejection around the $116,000 at the start of this week, institutional and corporate demand continues to strengthen. According to SoSoValue data, as shown below, Bitcoin spot Exchange Traded Funds (ETFs) recorded an inflow of $260.02 on Monday, continuing its streak of positive flows since September 8. If this inflow continues and intensifies, BTC could experience further price recovery.
Total Bitcoin spot ETF net inflow daily chart. Source: SoSoValue
On the corporate front, demand continues to grow as Strategy co-founder Michael Saylor announced on social network X on Monday that his company has added 525 BTC to its reserve, bringing the total holding to 638,985 BTC. During the same period, other firms, including Capital B and Prenetics, also added a total of 88.6 BTC. 
Additionally, NEXT Technology Holding Inc. has filed a Form S-3 registration statement with the US Securities and Exchange Commission (SEC), seeking to raise up to $500 million through a shelf offering. The company intends to use the proceeds for general corporate purposes, including working capital, research and development expenses, potential acquisitions, and the purchase of Bitcoin.
CryptoQuant data indicate that Bitcoin’s price trend has once again decoupled from the S&P 500, marking the first time in a year. The index closed above 6,600 on Monday, setting a new record high, while BTC closed below $116,000 that same day. Historically, when such divergences have occurred between BTC and the S&P 500, BTC has later caught up and even outperformed. If history repeats, this current decoupling could hint at Bitcoin preparing for a strong rally once it regains momentum.
QCP Capital’s report on Monday highlighted that BTC’s recovery from its September lows near $107,000 looks solid but contained. The Federal Reserve’s (Fed) near-term monetary easing path is clear, yet sticky US core inflation and weak job growth could complicate the outlook. Until there is more clarity, markets may tread water before their next decisive move.
Bitcoin price recovered slightly last week but faced resistance around the daily level of $116,000 on Saturday and experienced a mild rejection the next day. At the start of this week, on Monday, BTC reattempted to close above this resistance but failed to do so. At the time of writing on Tuesday, it hovers around $115,500.
If BTC closes above the daily resistance level at $116,000 on a daily basis, it could extend the rally toward its psychological level at $120,000.
The Relative Strength Index (RSI) on the daily chart reads 57, remaining steady above the midline and reflecting slight bullish momentum. The Moving Average Convergence (MACD) indicator on the same chart displayed a bullish crossover on September 6, which remains in effect, indicating sustained bullish momentum and an upward trend ahead.
BTC/USDT daily chart
On the contrary, if BTC fails to close above the $116,000 resistance level and continues to correct, it could extend the decline toward its 50-day Exponential Moving Average (EMA) at $113,497.
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Avalanche (AVAX) price edges lower by 1% at press time on Tuesday, extending the struggle near the $30 mark. Bitwise is preparing to launch for the AVAX Exchange Traded Fund (ETF) with the S-1 form filed with the US Securities and Exchange Commission (SEC), tilting the scales bullish.
Cardano (ADA) price hovers around $0.85 at the time of writing on Tuesday, having declined by over 7% in the last two days. This correction comes amid ADA holders realizing profits, thereby increasing selling pressure.
Pump.fun (PUMP), Aerodrome Finance (AERO), and World Liberty Financial (WLFI) are the top performers in the cryptocurrency market over the 24 hours as the market remains turbulent ahead of the US Consumer Price Index (CPI).
REX Shares is preparing to launch an exchange-traded fund (ETF) designed to track the spot price of XRP, which it claims will be the first spot XRP product available in the US.
Bitcoin steadies around $115,000 at the time of writing on Friday, having recovered nearly 4%. This recovery is further fueled by strong institutional inflows and renewed corporate accumulation this week.
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.
©2025 "FXStreet" All Rights Reserved
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.