- The price of Bitcoin increased by 4% to reach a 10-day high of $85,900 on Wednesday, coinciding with the Federal Reserve’s decision to pause interest rates, which matched market predictions.
- According to IntoTheBlock’s on-chain analysis, large BTC transactions saw a $13 billion uptick since the week’s onset.
- Bitcoin ETFs experienced over $500 million in inflows during the three days leading up to the Fed meeting.
Bitcoin’s price soared by 4% to a 10-day peak of $85,900, driven by institutional interest and over $500 million in Bitcoin ETF inflows ahead of the Federal Reserve’s announcement. What will be BTC’s next move?
Bitcoin (BTC) price reaches 10-day high following Fed announcement
Bitcoin (BTC) surpassed crucial support levels after the US Fed declared a pause on interest rates, which was in line with market expectations. Following lower-than-anticipated inflation signals in the Consumer Price Index (CPI) and Producer Price Index (PPI) data released earlier this month, market participants anticipated a high likelihood of this rate pause.
Bitcoin price movement | BTCUSDT
On Wednesday, Bitcoin experienced a 4% surge, climbing to a 10-day high of $85,900 due to the US Fed’s rate decision and an encouraging sentiment resulting from the SEC dropping its charges against Ripple, leading to a market-wide rally.
Bitcoin ETFs see $500M in inflows as whale activity surged by $13B ahead of Fed meeting
Despite Bitcoin’s 4% increase on Wednesday, other critical fundamental indicators suggest heightened whale accumulation in anticipation of the Fed’s rate announcement. After a three-week sell-off, Bitcoin ETFs saw a turnaround this week, logging $512 million in cumulative inflows over the last three trading days, as reported by SosoValue.
On Wednesday, Bitcoin ETFs attracted $209 million in net inflows, following earlier inflows of $32 million and $274 million. This marks the first occurrence since January 31 that Bitcoin ETFs enjoyed three consecutive days of positive net flows.
Bitcoin ETF Flows | SosoValue
Moreover, on-chain statistics from IntoTheBlock reveal that Bitcoin whale activity surged significantly before the Fed’s decision.
The BTC Large Transactions chart below illustrates the total value of Bitcoin transactions exceeding $100,000 in a single day, offering real-time insights into the capital deployed by whale traders and large corporate investors during pivotal market events.
Bitcoin Whale Transaction volumes rise $13 billion ahead of US Fed Meeting | Source: IntoTheBlock
As illustrated, Bitcoin recorded only $32 billion in large transactions at the start of the week on March 15.
However, large transaction volumes surged by 40% to reach $42.9 billion as of Wednesday.
This indicates that the demand from BTC whales escalated by $13 billion in the lead-up to the US Fed’s rate announcement.
Bitcoin price outlook: Sell-the-news triggers could lead to a pullback to $80K
Bitcoin’s 4% surge on Wednesday was accompanied by substantial whale demand.
Nonetheless, when whales make significant purchases prior to a critical market event, as observed in Bitcoin markets this week, it often raises the risk of a sell-the-news strategy being implemented.
If these large investors choose to execute strategic exits, Bitcoin’s price might experience a sharp correction in the upcoming trading sessions.
Bitcoin price forecast | BTC
However, Bitcoin’s short-term momentum remains largely positive, as indicated by the Moving Average Convergence Divergence (MACD) indicator shown in the chart above.
The MACD histogram has turned green, suggesting a shift in momentum towards an upward trend, while the MACD line is nearing a bullish crossover above the signal line.
This movement often indicates the potential for extended gains if buying pressure continues.
Furthermore, BTC’s price has surpassed the middle band of the Donchian Channel at $85,803, signaling bullish dominance as it aims for the upper band resistance near $96,000.
Conversely, if Bitcoin fails to overcome the $90,000 psychological barrier, profit-taking by whales and short sellers could initiate a retracement.
The MACD’s negative values reveal lingering bearish pressure, while the lower boundary of the Donchian Channel at $76,606 remains a critical downside target.
