- On Wednesday, Bitcoin’s price climbed 4% to reach a 10-day high of $85,900, coinciding with the Federal Reserve’s decision to pause interest rates, which matched market predictions.
- According to IntoTheBlock’s on-chain analysis, Bitcoin’s large transactions surged by $13 billion since the week began.
- In the three days preceding the Federal Reserve meeting, Bitcoin ETFs experienced inflows exceeding $500 million.
Bitcoin’s price has increased by 4%, achieving a 10-day peak of $85,900 due to heightened institutional interest and significant inflows into Bitcoin ETFs, surpassing $500 million ahead of the Federal Reserve’s announcement. What will be Bitcoin’s next move?
Bitcoin (BTC) Hits 10-Day High Post Fed Meeting
Bitcoin (BTC) surpassed important support levels following the announcement of a rate pause by the US Federal Reserve, which was anticipated by the market. With inflation indicators from the earlier CPI and PPI reports being lower than expected, investors had already factored in a likely rate pause.
Bitcoin Price Movement | BTCUSDT
This Wednesday saw Bitcoin rise by 4%, reaching a 10-day high of $85,900, fueled by institutional demand alongside a positive sentiment from the SEC’s decision to drop charges against Ripple, both acting as catalysts for a broader market rally.
Bitcoin ETFs Experience $500M Inflows as Whale Demand Surges by $13B Ahead of Fed Meeting
While Bitcoin’s price only saw a 4% increase on Wednesday, other important market indicators suggest a surge in whale accumulation prior to the Fed’s decision. After a three-week streak of selling, Bitcoin ETFs saw a turnaround this week, reporting cumulative inflows of $512 million over the last three trading days, according to SosoValue.
On Wednesday, Bitcoin ETFs alone attracted net inflows of $209 million, following earlier inflows of $32 million and $274 million during the week. This marks the first instance since January 31 that Bitcoin ETFs have experienced three consecutive days of positive net flows.
On-chain data from IntoTheBlock also corroborates that large investors significantly increased buying pressure in the lead-up to the Fed’s decision. The BTC Large Transactions chart displayed a rise in the total value of Bitcoin transactions exceeding $100,000 in a single day. This real-time data illustrates the capital deployed by big traders and corporate investors during key market events.
Bitcoin Price Forecast: Potential Pullback to $80K Due to Sell-the-News Triggers
Wednesday’s 4% rally in Bitcoin was met with significant demand from whales. Nonetheless, large purchases made by whales before major market events can sometimes lead to a “sell-the-news” scenario. If these investors choose to execute strategic sell-offs, Bitcoin could face a sharp correction in the upcoming trades.
However, in the short term, Bitcoin still maintains a largely positive momentum, as shown by the Moving Average Convergence Divergence (MACD) indicator. The MACD histogram has turned positive, indicating a momentum shift towards upward movement, while the MACD line is nearing a bullish crossover above the signal line. This pattern usually hints at the possibility of continued gains if buying pressure stays steady.
Furthermore, Bitcoin has surpassed the middle band of the Donchian Channel at $85,803, suggesting bullish dominance as it aims for resistance near the upper band around $96,000. On the flip side, if Bitcoin fails to surpass the psychological barrier at $90,000, profit-taking by large investors and shorts could lead to a downturn. The MACD’s negative values indicate lingering bearish sentiment, with the lower boundary of the Donchian Channel at $76,606 serving as an essential downside target.
