Institutional investors reducing Bitcoin holdings prior to FOMC meeting, with Bitcoin ETFs experiencing withdrawals
Wednesday Whap-Up: Bitcoin Takes a Rollercoaster Ride Amid Fed Decision
On a wild Tuesday, Bitcoin skidded off its tracks, experiencing a net outflow in ETFs that snapped a three-day streak of inflows packing a cool $1 billion dollars.
Anticipation hangs thick in the air as bigwigs weigh the Federal Reserve's upcoming policy decision. With the gambling chips stacked high, it seems the big guns are pulling back their Bitcoin ETF investments in a knee-jerk reaction to turbulent market waters.
Institutional Twists as Fed Fumbles the Football
Cashing out a whopping $85.64 million in Bitcoin ETFs, Tuesday marked a turn of events for institutional investors, right before the US Federal Reserve's latest policy meeting.
This cool-off period follows an impressive parade of inflows, amounting to over $1 billion, into those Bitcoin-backed funds. The shift suggests a strategic move as investors brace themselves for potential volatility following the FOMC announcement.
It's also a clever tactic to sidestep short-term losses should an unfavorable policy signal or unforeseen market reaction rear its ugly head.
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Join the Mixer Today!Despite the ETF drain, on-chain data highlights a pulse-quickening boost in spot net inflows for today. It looks like while institutional players are shying away from ETFs, they might be moonwalking their way into direct spot positions - eager to catch some short-term price swings, both before and after the Fed's announcement.
CoinGlass points to spot net inflows of $9.72 million for BTC - bullish news, as the purchased coins or tokens flooding into the spot markets indicate mounting demand.
This points to investors stacking bitcoins like pancakes - a trend that can drive prices skyward if the buying frenzy lingers.
Bitcoin Bounces Higher on Buyer Stamina
With a $96,679 asking price, BTC marches onward, recording a 2% jump over the past day. The positive Balance of Power (BoP) reflects the relentless surge in spot buying activity ahead of the FOMC meeting, where it currently stands at 0.10.
This balance meter gauges the power struggle between buyers and sellers by comparing closing prices against trading ranges over a specific period. A positive value translates to buyers reigning supreme, hinting at bullish momentum and upward pressure on an asset's price.
Should demand stoke the fire and continue to warm the market post-FOMC meeting, BTC might steamroll its way toward $102,080.
However, if a volley of market volatility sends the ball rocketing downfield, BTC could surrender recent gains, pierce through the $96,187 barrier, and nose-dive to $92,048.
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- Despite the Bitcoin ETF drain, direct spot positions are seeing a surge in demand, as investors are buying tokens to capitalize on potential short-term price swings, according to on-chain data.
- With the FOMC announcement looming, the positive Balance of Power (BoP) reflects a relentless surge in spot buying activity, indicating bullish momentum and upward pressure on Bitcoin's price.
- As web3 and crypto investing gain traction, platforms like Uphold offer a unique opportunity to invest in emerging assets, including crypto, stocks, and precious metals under one roof.
- Amid the turbulent market, some institutional investors are choosing to invest directly in bitcoins, a strategic move to avoid short-term losses and capitalize on price swings, as indicated by token purchasing activity.
