Bitcoin shakes off ETF month with modest upside
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it bounced around $1,000 off lows of $41,860 on Bitstamp.
These immediately followed the January candle close, leaving Bitcoin just 0.6% higher for the first month of 2024.
Bulls faced continued struggles to reclaim lost ground after a 20% dive from two-year highs of $49,000, and as February began, calls for new lows remained.
In an update to subscribers on X (formerly Twitter), trading resource Material Indicators flagged new downside tips from its proprietary trading tools.
โMonthly charts doesn't necessarily mean price will make a lower low this month, but it does indicate that price will not make a new high this month unless the new #TradingSignals invalidate,โ part of one post stated.
โThat said, I'd be surprised if we didn't at least see Bitcoin test support at the local low ~$38.5k before the end of the month.โ
$38,500 marks Januaryโs low at the trough of the 20% BTC price pullback.
As Cointelegraph reported, matters were not helped by macroeconomic developments on Jan. 31.
The United States Federal Reserve, while holding interest rates in line with expectations, nonetheless sought to stem bets of rate cuts in the first half of the year. That move is keenly anticipated by risk-asset traders as monetary easing boosts liquidity conditions.
โIn considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,โ an official press release read.
โThe 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.โ
Data from CME Groupโs FedWatch Tool put the odds of a cut at the Fedโs March meeting at 45% at the time of writing.
GBTC outflows stabilize around 6,000 BTC
The first day of February meanwhile saw around 6,200 BTC in outflows from the Grayscale Bitcoin Trust (GBTC), per live data from crypto intelligence firm Arkham.
Related: BTC price shows $60K โpotentialโ as MVRV metric copies Bitcoin bull cycles
These were in line with recent days, but still considerably below the daily peak of 25,000 BTC seen since its conversion to a spot Bitcoin exchange-traded fund (ETF).
The U.S. spot Bitcoin ETFs saw net inflows of nearly $200 million for Jan. 31, data from sources including Bloomberg Intelligence confirms.
โTotal net inflows of $1.46 billion since launch,โ analyst James Seyffart added in part of commentary while uploading the data to X.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
