Bitcoin Surges 12% After FOMC Meeting Despite $260 Million ETF Outflows

Bitcoin Surges 12% After FOMC Meeting Despite $260 Million ETF Outflows

Bitcoin News
March 21, 2024 by Diana Ambolis
292
Bitcoin Quickly Liquidates Short Positions as Price Rebounds Following Federal Reserve Economic Policy Meeting Bitcoin Maintains Higher Levels on March 21 After 12% Price Surge Following a rapid rebound, Bitcoin stayed elevated, reaching $66,884. Data from sources and TradingView indicated a consolidation within a narrow range following a significant comeback the previous day. Bitcoin responded
Bitcoin

Bitcoin Quickly Liquidates Short Positions as Price Rebounds Following Federal Reserve Economic Policy Meeting

Bitcoin Maintains Higher Levels on March 21 After 12% Price Surge Following a rapid rebound, Bitcoin stayed elevated, reaching $66,884. Data from sources and TradingView indicated a consolidation within a narrow range following a significant comeback the previous day.

Bitcoin responded positively to statements from the United States Federal Reserve, which opted to keep interest rates unchanged. Following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell suggested that implementing rate cuts later in the year might be “appropriate.”

“The 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,” a press release accompanying the meeting reiterated.

Also, read- “Record ETF Outflow: Grayscale Set to Exhaust Bitcoin Holdings in 4 Months at Current Pace”

BTC/USD managed to avoid revisiting the $60,000 support level, instead climbing to $68,000 and completely recovering previous losses. Popular trader Jelle noted in his latest analysis on X (formerly Twitter), “Today’s objective: hold above $65,300.”

Short sellers faced significant losses during this movement, with data from monitoring resource CoinGlass showing total short Bitcoin liquidations for March 20 at $70 million.

Despite new outflows from United States spot Bitcoin exchange-traded funds (ETFs), sentiment remained largely unaffected. According to the latest data from United Kingdom-based investment firm Farside, an estimated $261 million exited the new ETF products on March 20, primarily due to $386 million in outflows from the Grayscale Bitcoin Trust (GBTC). However, other ETFs saw inflows, which were only a fraction of the daily revenue observed earlier in the month.

Market observers remained optimistic, interpreting Bitcoin’s lack of reaction to the third consecutive day of outflows as a sign of newfound resilience to ETF dynamics. Commentator Dyme suggested in a post, “Today’s bounce with the negative inflow (assuming accurate and including post-market?) means that the market is not dependent on the ETFs to move up.”

Samson Mow, CEO of crypto adoption firm Jan3, predicted that eventually, even GBTC would witness net inflows as standard. “All Bitcoin ETF outflows will eventually become inflows. Plan accordingly,” he summarized.