Bitcoin ETFs Experience Significant Inflows, Price Poised for Movement
Bitcoin ETFs have seen over $250 million in inflows, signaling renewed institutional interest, yet Bitcoin’s price remains under $85,000. The market is closely monitoring the FOMC meeting, which could affect volatility and future price movements. Analysts are divided on the potential for a rally or correction in Bitcoin’s price.
As of March 17, Bitcoin exchange-traded funds (ETFs) experienced a substantial inflow exceeding $250 million, marking the highest single-day increase since February 4. This renewed institutional interest followed five weeks of outflows amounting to $5.4 billion, according to SoSoValue data. Key ETF issuers, including Fidelity, BlackRock, and Grayscale, all reported positive inflows, leading with Fidelity’s FBTC at $127.3 million, ARK Invest’s ARKB at $88.5 million, BlackRock’s IBIT at $42.3 million, and Grayscale’s GBTC at $14.2 million.
Despite this significant influx of capital, Bitcoin’s price has yet to surpass $85,000, remaining stagnant around $83,000. The cryptocurrency has attempted to breach the $85,000 threshold but has consistently fallen short of closing above $84,600 since March 12. Much attention is now directed toward the Federal Open Market Committee (FOMC) meeting scheduled for March 19, which is anticipated to influence market volatility. According to the CME’s FedWatch tool, there is a 99% likelihood that the Federal Reserve will hold interest rates steady at 4.25%–4.50%, leading traders to focus on Chairman Jerome Powell’s future monetary policy indicators.
The market sentiment regarding Bitcoin’s forthcoming trajectory is divided among analysts. While some foresee a potential rally towards $95,000, others caution about a possible correction to lower support levels. Trader Lucky noted on X, “Everyone is asking me about the next BTC move… There are two possibilities: a push toward $95K or a dip to $73K.” Contrarily, Merlijn The Trader highlighted technical concerns, suggesting Bitcoin’s recent breakdown from a rising wedge could lead to a decline towards $78,000.
Despite market hesitancy, on-chain data indicates a revival of confidence among institutional investors. Should ETF inflows continue, Bitcoin might garner sufficient momentum to reach its all-time high of $108,786. Conversely, if the market remains lethargic, a retest of prices around $80,000 or even lower could be anticipated.
In conclusion, Bitcoin ETFs have marked a noteworthy revival with over $250 million in net inflows recently. Despite this institutional interest, Bitcoin’s price has yet to break the crucial $85,000 barrier. Analysts are split on whether Bitcoin will experience a rally to $95,000 or face a correction towards lower support levels. The upcoming FOMC meeting may play a pivotal role in determining market movements.
Original Source: www.thecoinrepublic.com
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