Bitcoin (BTC) remained in a higher position on March 21 following a quick recovery that resulted in a 12% increase in its price.
After experiencing a significant comeback the previous day, BTC entered a period of consolidation within a narrow range.
The positive reaction from Bitcoin was a result of comments made by the United States Federal Reserve, which decided to keep interest rates at their current levels.
Following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell stated that it would be “appropriate” to implement rate cuts later in the year.
BTC/USD managed to avoid retesting the $60,000 support level and instead rose to $68,000, completely recovering its previous losses.
Renowned trader Jelle expressed in his latest analysis that the objective for the day was to maintain a price above $65,300.
During this upward movement, short sellers faced significant losses, with a total of $70 million in short BTC liquidations on March 20.
Despite this, the outflows from United States spot Bitcoin exchange-traded funds (ETFs) did not have a significant impact on market sentiment.
Based on data from Farside, a UK-based investment firm, $261 million left the new ETF products on March 20, primarily due to $386 million in outflows from the Grayscale Bitcoin Trust (GBTC).
However, the other ETFs experienced inflows that were only a fraction of the daily revenue seen earlier in the month.
Market observers responded with optimism, noting that Bitcoin’s lack of reaction to three consecutive days of outflows demonstrated its resilience to ETF forces.
Dyme, a popular commentator, stated that the market’s bounce despite the negative inflow indicated that it was not reliant on ETFs to move upwards.
Samson Mow, the CEO of Jan3, a crypto adoption firm, predicted that all Bitcoin ETF outflows would eventually turn into inflows.
It is important to note that this article does not offer investment advice or recommendations. Readers should conduct their own research before making any investment decisions.
Bitcoin price surges 12% following FOMC, disregarding $260M ETF outflows.