BTC Price Gains 12% After FOMC, Bitcoin Ignores $260M ETF Flow
Bitcoin (BTC) remained higher on March 21. After a quick rebound gave the bulls 12% BTC price gains.
BTC price is higher on FOMC watch.
Data from Cointelegraph Markets Pro and TradingView showed consolidation in a narrow range after a dramatic rebound a day earlier.
Bitcoin has responded positively to comments from the United States Federal Reserve as it chooses to hold interest rates at current levels.
After the Federal Open Market Committee or FOMC meeting, Fed Chairman Jerome Powell indicated that it is “appropriate” to approve rate cuts during the year.
“Until it has confidence that inflation is sustainably moving toward 2 percent, the Committee does not expect it to be appropriate to lower the target range,” the accompanying press release reiterated.
BTC/USD avoided another attempt at the $60,000 support, eventually heading towards $68,000 and completely erasing the previous losses.
“Today's objective: hold above $65,300,” noted trader Jelle wrote in part of his latest analysis on X (formerly Twitter).
“Do that – and regaining the highs of the 2021 cycle is on the menu.”
During the movement, shorts can be predicted at the receiving end. Tracking source data CoinGlass puts total short BTC liquidity at $70 million for March 20.
Bitcoin ETFs See Third Day Outs.
Newly released Bitcoin exchange-traded funds (ETFs) from the US space, meanwhile, failed to dampen further sentiment.
Related: Price Analysis 3/20: BTC, ETH, BNB, SOL, XRP, ADA, DOGE, AVAX, SHIB, TON
The latest figures from UK-based investment firm Farside show that $261 million worth of new ETF products were dumped on March 20, mostly from Grayscale Bitcoin Trust (GBTC) with $386 million.
Other EFAs have seen inflows, which are just a fraction of the daily income at the beginning of the month.
In response, market observers tended to remain optimistic. Bitcoin's lack of response to a third consecutive day of outflows, noted analyst Dime, pointed to renewed strength in ETF forces.
Part of X's post is “Today's exit from negative earnings flow (correct and including aftermarket?) means the market is no longer dependent on ETFs to move higher.”
Samson Mou, CEO of crypto adoption company JAN3, argued that even GBTC will see net income as normal in the future.
“All Bitcoin ETF outflows will eventually become inflows. Plan accordingly,” he concluded.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
