After a strong push to $48,500 over the last weekend, the Bitcoin price has registered a modest retrace of around $48,000. The recent pause in the rally to $50,000 comes as investors are keenly watching the developments to the CPI data release, ahead this month.
US Economic Data and FOMC Speeches Awaited
As the week unfolds, investors eagerly anticipate the release of key economic indicators from the United States, including January Consumer Price Index (CPI) and Producer Price Index (PPI) data. Additionally, several members of the Federal Open Market Committee (FOMC) are scheduled to deliver speeches, offering insights into the central bank’s monetary policy outlook.
Market sentiment remains focused on the likelihood of the FOMC maintaining interest rates unchanged during its upcoming meeting on March 20. Currently, the Chicago Mercantile Exchange (CME) assigns an 82.5% probability to this outcome, indicating expectations for a stable interest rate environment in the near term.
Meanwhile, prominent crypto analyst Michael van de Poppe stated that Bitcoin is showing strong resilience in the $48,000 to $50,000 range. Van de Poppe views Bitcoin’s ability to withstand these challenges as a positive indicator, suggesting growing strength in the market, potentially fueled by increased institutional interest. He speculates that Bitcoin may target higher price levels, projecting a range of $53,000 to $57,000 before the upcoming halving event.
Bitcoin ETF inflows, on the other hand, continue to remain strong. All of the nine spot Bitcoin ETF funds have attracted over $9 billion in inflows so far, since launch on January 11. However, BlackRock and Fidelity, have a lion’s share of more than 66% in this. Caroline Bowler, CEO of crypto platform BTC Markets Pty, noted on Bloomberg Television that there are signs pointing to a growing influx of institutional funds into the asset class
Bitcoin Whale Accumulation on The Rise
Popular crypto analyst Ali Martinez noted that Bitcoin whales have been on a buying spree and have accumulated 140,000 Bitcoins just over the last three weeks, amounting to more than $6.16 billion.
Courtesy: Ali Martinez
Despite persistent skepticism surrounding Bitcoin, it’s crucial to acknowledge the resilience of support levels, which may surpass resistance, said Martinez. Although a temporary price correction is plausible, it’s imperative to realize that the next notable resistance threshold for BTC is substantially higher, approximately at $57,000.
