Bitcoin reaches $55k as exchange net flows plunge

Bitcoin has rebounded to the psychological $55,000 level, gaining 0.9% in the last 24 hours, despite recent bearish sentiment that briefly pushed it down to an intraday low of $53,650 on September 8. The leading cryptocurrency is currently trading at $55,000, with a notable increase in daily trading volume, which rose by 33% to reach $22 billion.

On September 7, Bitcoin experienced a significant daily exchange inflow of 68,470 BTC, but this influx sharply declined by 68% over the next two days, bringing inflows down to 21,742 BTC. Similarly, outflows from exchanges dropped 65% in the same period, from 65,847 BTC to just 22,802 BTC. As it stands, Bitcoin is facing a net outflow of 1,060 BTC, equating to over $583 million.

Despite this uptick in price, the Bitcoin Relative Strength Index (RSI) remains at 35, indicating that the cryptocurrency is still considered oversold, a condition that may be linked to the broader market selloff.

Additionally, a report from crypto.news highlighted that spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw net outflows of $706 million last week, contributing to the prevailing bearish momentum and increasing fear, uncertainty, and doubt (FUD) surrounding Bitcoin.