Bitcoin Bounces Back Despite $250 Million Outflow
21 Mar, 2024 ● Coin news
Bitcoin maintained its gains on March 21, following a rapid recovery that led to a 12% increase in its price.
TradingView data captured a period of tight consolidation after a significant rebound the previous day.
The positive price movement came in response to remarks from the U.S. Federal Reserve, which decided to keep interest rates steady.
Following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell indicated that rate reductions later in the year might be "appropriate."
The press release accompanying the meeting underscored this stance, stating, “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
As a result, BTC/USD steered clear of revisiting the $60,000 support level, climbing to $68,000 and reversing its prior losses.
Trader Jelle, in his recent analysis shared on X (formerly Twitter), set the day's goal: “hold above $65,300.”
Achieving this would pave the way for a return to the cycle highs of 2021.
The surge proved costly for those betting against Bitcoin, with CoinGlass reporting $70 million in short BTC liquidations on March 20.
Withdrawals from U.S.-based spot Bitcoin ETFs did not adversely affect market sentiment.
Farside, a UK investment company, reported that $261 million was withdrawn from these ETFs on March 20, with the Grayscale Bitcoin Trust (GBTC) accounting for $386 million of the outflows.
Despite these withdrawals, other ETFs experienced inflows, albeit much smaller compared to figures earlier in the month.
Market analysts remained hopeful in light of these developments.
The market's indifference to a third consecutive day of ETF outflows, according to commentator Dyme, signified a robustness against ETF-related market movements.
“Today’s bounce with the negative inflow (assuming accurate and including post-market?) means that the market is not dependent on the ETFs to move up,” stated a post on X.
Samson Mow, CEO of Jan3, a company focused on crypto adoption, voiced optimism that GBTC, like other Bitcoin ETFs, would eventually see inflows resume.
“All Bitcoin ETF outflows will eventually become inflows. Plan accordingly,” he concluded.
Sources:
https://cointelegraph.com/news/btc-price-gains-12-fomc-bitcoin-260m-etf-outflows
https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE
https://www.federalreserve.gov/newsevents/pressreleases/monetary20240320a.htm
https://twitter.com/MatthewHyland_/status/1770601248540016928
https://twitter.com/CryptoJelleNL/status/1770683696414085331/photo/1
https://www.coinglass.com/LiquidationData
https://twitter.com/CryptoParadyme/status/1770701371563557268
