Bitcoin Holds $42,000 Amid ETF Outflows; Market Braces for Federal Reserve's Decision
Summary:
Bitcoin (BTC) held onto $42,000 as the Jan. 29 Wall Street opened, with exchange-traded fund (ETF) outflows resuming. Grayscale Bitcoin Trust (GBTC) saw a further decrease in outflows, while Bitcoin ETFs recorded net inflows of $759 million despite the GBTC headwind. Meanwhile, Blackrock's iShares Bitcoin Trust (iBIT) held over 52,000 BTC worth over $2 billion. Anticipant traders are currently awaiting the United States Federal Reserve's decision on interest rates.
As Wall Street opened on January 29, Bitcoin (BTC) was holding onto the $42,000 mark while a new round of exchange-traded fund (ETF) withdrawals commenced. It was found that the BTC price was slowly reducing from the weekend's local highs of $42,800. Despite recently closing promisingly, the leading cryptocurrency experienced common roadblocks in the new week with the resurgence of outflows from the Grayscale Bitcoin Trust (GBTC), standing at $360 million on that day by the latest figures – a drop from the previous daily sum and about half of the top daily outflows.
James Seyffart, an analyst at Bloomberg Intelligence, noted that more than $5 billion had been drawn from GBTC since it transformed into an ETF on the same day. In contrast, despite this GBTC wind, on January 26 (the most recent full trading day), inflows to spot Bitcoin ETFs collectively surpassed $759 million.
BlackRock's data revealed that its iShares Bitcoin Trust (iBIT) ETF possessed over 52,000 BTC, exceeding $2 billion in value on that date. These figures triggered discussions on social media, with prominent investor Rajat Soni emphasizing the significant buy volume implied in comparison to Bitcoin’s daily output.
The markets anticipated a hectic macro week ahead, with Bitcoin's price movement generating cautious optimism but also volatility. All risky assets were preparing for the United States Federal Reserve's imminent decision on interest rates, scheduled for January 31, touted as the week's key event.
Current expectations estimate that there is about a 97% chance of the Fed holding at this meeting and around a 46% chance of a cut in March's meeting, according to financial commentator Tedtalksmacro. He anticipates this week's Federal Open Market Committee (FOMC) meeting to pave the way for rate reductions from March onwards.
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Published At
1/29/2024 6:40:25 PM
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