Yesterday’s ETF figures painted a gloomy picture for Bitcoin (BTC) with a net outflow of approximately $200 million. These withdrawals have hindered the recent rally, and with the upcoming Federal Reserve meeting, the inability to sustain a stable net influx has dampened risk appetite. In the last 24 hours, BTC hit a new low at $90,000. What does this signify?
Bitcoin (BTC) Slump
Yesterday, both BTC and Ethereum (ETH) experienced net outflows. While ETH saw a $140 million inflow the previous day, it ended in the red yesterday. This situation is a crucial detail that has affected short-term risk appetite, as the anticipated scenario was for institutional investors to continue their investments through the ETF channel.
As predicted, BTC tested the $90,000 level and as the market anticipates its opening, it lingers around $91,000. Analyst Jelle believes a test of $100,000 next week remains possible since the support level has been maintained. Should Federal Reserve Chair Powell deliver unexpectedly dovish remarks on Wednesday, pricing in a new year rally might be plausible, especially given that Quantitative Tightening (QT) has ended and unemployment figures have seen new peaks. Expecting anything else seems challenging.
Today’s upcoming PCE data could further dampen investors’ short-term appetite. The inflation gauge, monitored by the Federal Reserve, will be released half an hour after the U.S. market opening and updates will be provided in real-time.
ETH and Altcoins
Currently, ETH appears stronger compared to BTC. Poppe highlights this, raising hopes for potential increases in altcoins. Ether remains above $3,100, and despite part of the $140 million ETF inflow turning into outflows this week, it maintains its strength.
“This is a good start for ETH. Although support continues on a higher timeframe, I believe more strength will be needed in the coming weeks, and this is the first step. I think ETH will surpass Bitcoin, and the entire Ethereum ecosystem will grow in the coming period.”
Quinten, who shared the total market capitalization graph of altcoins, suggests a bounce from the support line.
“It is currently facing some resistance, but once this resistance is broken and turns into support, a return to $1.65 trillion will be confirmed. This move already seems long overdue.”