April 19, 2024
Bitcoin's at $66,962, Surges 12% Post-FOMC
Bitcoin price today

Bitcoin’s at $66,962, Surges 12% Post-FOMC

Thursday, March 21, 2024: Bitcoin price is at $66,962, witnessed a significant resurgence, reaching $66,819 on March 21, maintaining its elevated position following a rapid rebound. Bulls gained a substantial 12% in BTC price, supported by positive momentum attributed partly to comments from the United States Federal Reserve.

BTC/USD 1-hour chart. Source: TradingView

Fed’s Stance and Market Response

Federal Reserve Chair Jerome Powell’s remarks hinting at potential rate cuts later in the year contributed to the positive market sentiment. Powell emphasized the importance of achieving sustained inflation growth toward the 2 percent target before considering rate adjustments. BTC/USD managed to avoid revisiting the $60,000 support level, rallying to $68,000 and fully offsetting previous losses.

Source: Matthew Hyland

Trader Objectives and Market Dynamics

Prominent trader Jelle set an objective to maintain levels above $65,300, anticipating a reclaim of the highs seen in the 2021 cycle. Despite short sellers facing significant losses, with total short BTC liquidations amounting to $70 million on March 20, market sentiment remained largely unaffected.

BTC/USDT 4-hour chart. Source: Jelle/X

ETF Outflows and Market Optimism

Despite outflows from US-based spot Bitcoin exchange-traded funds (ETFs), with $261 million exiting new ETF products on March 20, sentiment remained positive. Notably, $386 million in outflows from the Grayscale Bitcoin Trust (GBTC) contributed to the overall ETF outflows. Market observers expressed optimism regarding Bitcoin’s resilience to ETF-related fluctuations.

BTC liquidations (screenshot). Source: CoinGlass

Future Outlook

Market observers, including Dyme and Samson Mow, remained optimistic about Bitcoin’s future performance. Dyme noted Bitcoin’s lack of response to consecutive days of outflows, suggesting increased independence from ETF influence. Samson Mow predicted that Bitcoin ETF outflows would eventually turn into inflows, urging investors to plan accordingly.

Bitcoin ETF flows (screenshot). Source: Farside

Photo by Karolina Grabowska

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