Bitcoin Stays Below $43K amid Expectations of US Economic Policy Update and Increased ETF Outflows
Summary:
As Wall Street opened on January 31, Bitcoin (BTC) remained below $43,000 due to a dip in risk assets ahead of imminent U.S economic policy updates. Market data showed Bitcoin price action holding at about $1,000 below the previous day's peak. Traders noted a rangebound structure on longer timeframes for BTC/USD, which was likely to persist. There was also a significant outflow of about 8,000 BTC from the Grayscale Bitcoin Trust (GBTC), reflecting heavier ETF outflows compared to previous days.
As Wall Street opened on January 31, Bitcoin (BTC) remained below the $43,000 mark amid a dip in risk assets ahead of a crucial US economic policy update. The cryptocurrency's price action hovered approximately $1,000 below the previous day's local peak, according to data from Cointelegraph Markets Pro and TradingView.
Market behavior was cautious as the Federal Reserve prepared to announce potential changes to the benchmark interest rate. This announcement was set to coincide with a speech and press release by Jerome Powell, the Federal Reserve Chair, which could prompt volatility in risk assets. Experts anticipated swift movements in either direction.
Popular trader, Daan Crypto Trades, referenced the upcoming Federal Open Market Committee meeting, hinting at a turbulent market environment. He pointed out that the near-term resistance line to overcome were the 200-period simple and exponential moving averages.
Fellow trader Rekt Capital noticed a rangebound structure in place on longer timeframes and predicted that BTC/USD would remain within it for the foreseeable future. A similar perspective was shared by Nebraskan Gooner, a teacher and trader in crypto, who expressed neutrality at the current levels.
On ETF activity, there was a significant outflow of approximately 8,000 BTC ($343 million) from the Grayscale Bitcoin Trust (GBTC). This was a notable increase from the two previous days, according to data from Arkham intelligence firm.
Traders considered these ETF outflows in the context of Bitcoin’s daily new minted supply. Popular commentator WhalePanda on Jan. 30 tweeted about consecutive days of $250 million inflows, hinting that such a trend could create a supply shock on BTC.
This news story does not offer investment advice or suggestions. Readers should perform their own research prior to making investment decisions as every investment and trade carries a certain level of risk.
Published At
1/31/2024 6:36:56 PM
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