Bitcoin Prepares For Powell’s Fed As Outflows Surpass $340M

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At the Wall Street opening on January 31, Bitcoin (BTC) was trading at $42,049, remaining below $43,000 as risk assets declined following an important update on US economic policy.

According to data from Cointelegraph Markets Pro and TradingView, 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 said on X (formerly Twitter) that “Open interest is increasing as we approach today’s FOMC,” alluding to the Federal Open Market Committee meeting. “Usually indicates that people will be chopped up, and as usual, we see a respectable-sized wick pointing in both directions around the event.”

Another 8,000 Bitcoins Are Lost From GBTC In A Small Increase

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

The GBTC had greater withdrawals during the day than it did the previous two days, according to the spot Bitcoin ETF trends. As of writing, they amounted to around 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 every day 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.