Bitcoin Price Stability Amidst Fed Remarks and ETF Outflows

Bitcoin stabilises at around $84,000 amidst market uncertainties due to Fed’s hawkish remarks and a significant outflow from Bitcoin spot ETFs of $169.87 million. The 200-day EMA resistance at $85,000 continues to present challenges for BTC, with momentum indicators showing indecisiveness among traders. Upcoming economic data could influence Bitcoin’s price direction.

Bitcoin (BTC) has shown stability around the $84,000 mark as of Thursday, following repeated resistance at the 200-day Exponential Moving Average (EMA) located at $85,000. The recent hawkish remarks from the US Federal Reserve have impacted market sentiment negatively for riskier assets, including Bitcoin. Additionally, Bitcoin spot Exchange Traded Funds (ETFs) witnessed a notable outflow of $169.87 million on Wednesday, signalling reduced institutional demand.

During the European trading session on Thursday, Bitcoin managed to maintain its position above $84,000, despite Fed Chair Jerome Powell’s negative comments regarding imminent interest rate cuts. A report from FXStreet noted the Fed’s reluctance to lower rates due to inflationary pressures, exacerbated by adverse tariff policies. Meanwhile, the US Census Bureau revealed retail sales rose by 1.4% in March, surpassing expectations.

Despite a positive equity market advance in the Asia-Pacific region on Thursday, traders remain cautious. They anticipate potential rate cuts may commence in June, which dampens aggressive speculation on the US Dollar (USD), allowing Bitcoin to demonstrate resilience amid uncertainties. The focus now shifts to upcoming US economic indicators including jobless claims, the Philly Fed Manufacturing Index, and crucial housing data.

This week has seen a decrease in institutional flows, with Bitcoin spot ETFs reporting a net outflow of $169.87 million on Wednesday after a short-lived inflow of $77.42 million. Continuing outflows could lead to further downward pressure on Bitcoin’s price. A sustained decline may prompt a revisit of significant support at $78,258.

As of Thursday, Bitcoin has repeatedly faced challenges at the 200-day EMA at $85,000, which it had attempted to breach unsuccessfully. A closing price above $85,000 would potentially initiate momentum towards the psychological threshold of $90,000 and beyond. The Relative Strength Index (RSI) hovering around 50 suggests a lack of clear direction among traders; movement above this level is necessary for bullish momentum to gain traction.

Bitcoin is the largest cryptocurrency by market capitalisation, intended as a decentralised form of currency. Altcoins refer to any crypto other than Bitcoin, with Ethereum often excluded from this category due to its unique status. Stablecoins represent a class of cryptocurrencies designed to maintain stable value, often pegged to traditional assets; they offer an essential tool for investing in the volatile crypto market.

The information in this article may contain forward-looking statements and should not be seen as investment advice. Conducting thorough personal research is essential before making any investment decisions. The views expressed here are solely those of the authors and do not necessarily reflect the official stance of any organisation. Investment involves risks, including loss of principal; the authors are not responsible for any liabilities.