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Bitcoin Hovers Near $43K Ahead of Fed Economic Policy Update

2024.02.01

 

Key Takeaways

  • Bitcoin’s price remains steady near $43,000 as markets anticipate the Federal Reserve’s policy decision.
  • Grayscale Bitcoin Trust sees significant BTC outflows, hinting at a possible supply shock.

Anticipating Federal Reserve’s Move

Bitcoin’s price is cautiously treading near the $43,000 mark as the cryptocurrency market awaits the Federal Reserve’s decision on interest rate changes. With an upcoming speech and press conference by Chair Jerome Powell, investors are preparing for potential volatility in risk assets.

Market Analysts Weigh In

Traders and analysts are closely monitoring the situation, noting the increasing open interest ahead of the Federal Open Market Committee (FOMC) meeting. Analyst Daan Crypto Trades highlighted the significance of the 200-period SMA and EMA as resistance levels, while Rekt Capital pointed out a rangebound pattern in Bitcoin’s price movement.

Neutral Expectations Amidst Uncertainty

Despite the looming FOMC decision, market sentiment remains neutral, with expectations of choppy price action. Nebraskan Gooner, a crypto educator, expressed tempered expectations and a neutral stance at the current price levels.

Spotlight on ETF and GBTC Outflows

In ETF developments, the Grayscale Bitcoin Trust (GBTC) experienced substantial outflows, approximately 8,000 BTC, slightly higher than the previous day. This movement is gaining attention for its potential impact on Bitcoin’s supply and price dynamics.

The Impact of Inflows and Supply Shock

Market commentators are increasingly focusing on the size of ETF inflows relative to the supply of newly mined Bitcoin. WhalePanda, a popular crypto commentator, emphasized that continuous inflows of this magnitude could lead to a significant supply shock for Bitcoin.

 


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