Bitcoin Price Readies for Powell’s Fed as Outflows Surpass $340 Million

Written by Rock Buivy

Post Date: 2 Feb, 24

The price of bitcoin is attempting to break beyond $43,000 as the hours lead up to the Fed’s important remarks on U.S. economic policy.

At the Wall Street open on January 31, Bitcoin remained below $43,000 as risk assets declined following a significant update on US economic policy.

According to data from TradingView and Cointelegraph Markets Pro, the price action of Bitcoin remained within a range of about $1,000 below the local high of the previous day.

In the hours before the Federal Reserve’s decision to adjust benchmark interest rates, which coincided with Chair Jerome Powell’s speech and press conference, markets were cautious.

The latter is likely to incite volatility in risk-assets, and as Cointelegraph noted, pundits were already geared up for sudden movements in both directions.

Popular trader Daan Crypto Trades posted on X (formerly Twitter) that “open interest is grinding up while we have FOMC later today,” alluding to the Federal Open Market Committee meeting.

"Often means that people will get chopped up and as always we tend to see a decently sized wick towards both sides around the event."

The 200-period simple and exponential moving averages, or SMA and EMA, were mentioned by Daan Crypto Trades as the short-term resistance lines to overcome.

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Meanwhile, well-known trader and analyst Rekt Capital noticed a rangebound structure on longer timeframes and projected that the price of bitcoin/USD will stay within it “for the foreseeable future.”

Trader and cryptocurrency instructor Nebraskan Gooner remarked, “I’m not getting overly excited here,” during a portion of his own X coverage of the daily chart.

"My expectations are low and I'm feeling neutral at these levels. Might just get some chop."

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GBTC sees another 8,000 BTC outflow in modest uptick

The Grayscale Bitcoin Trust (GBTC) saw greater withdrawals during the day than it did the previous two days, according to the spot Bitcoin exchange-traded fund (ETF) trends.

As of writing, they amounted to approximately 8,000 BTC ($343 million), according to real-time data provided by the intelligence firm Arkham.

Not too far from yesterday. Another successful day with +$247.2M in inflows was yesterday. IBIT is currently matching GBTC in daily volume as well, Daan Crypto Trades said in part.

Views that were more optimistic about the ETF flows concentrated on how big they were in comparison to the amount of freshly minted Bitcoin that was produced every day.

“Price didn’t really rally much yesterday, but a couple of days like this and you’ll see what kind of supply shock this will have on BTC,” well-known analyst WhalePanda continued on January 30 in addition to provisional inflow data from investment firm Farside, based in the United Kingdom.

Bitcoin Price: Key Metrics and Trends

Bitcoin price movements have been under the spotlight as the cryptocurrency prepares for potential shifts in response to the actions of the Federal Reserve, led by Chair Jerome Powell.

Amidst ongoing market volatility, Bitcoin outflows from exchanges have surpassed $340 million, indicating a shift in investor sentiment and potential capital allocation strategies.

Over the years, Bitcoin has experienced significant price fluctuations, reaching its all-time high of nearly $65,000 in April 2021 before undergoing a substantial correction.

Despite this, the cryptocurrency has demonstrated resilience, with institutional interest and adoption continuing to grow.

Historical data showcases Bitcoin’s ability to rebound from market downturns, often leading to periods of heightened volatility followed by sustained price rallies.

As market participants await signals from the Federal Reserve regarding monetary policy and interest rates, Bitcoin’s price trajectory remains subject to various macroeconomic factors and regulatory developments.

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