Bitcoin Recovers Above $112,000, Boosted by Weekend Gains

Bitcoin rebounded to $112,000, recovering from losses linked to last week’s liquidation event. The resurgence was tied to an increase in buying pressure over the weekend, allowing the cryptocurrency to rise by 2.5% in the last 24 hours. Despite an observed decline in open interest for CME Bitcoin futures and options during September, optimism grew among crypto investors. Not surprisingly, many market experts noted that these recent declines were mostly due to quarter-end rebalancing rather than a weakening market. On the derivatives front, open interest in Bitcoin’s perpetual contracts increased from $42.8 billion to $43.6 billion alongside favorable funding rates, suggesting renewed market confidence. Meanwhile, U.S. spot Bitcoin exchange-traded funds faced their first red week in over a month, with significant net outflows attributed to market rebalancing. Nevertheless, bullish sentiment is expected to persist as Bitcoin enters a typically strong fourth quarter, with expectations for a median return of 52%.

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