Bitcoin ($BTC ) experienced a slight pullback, dipping below $95,000 after reaching highs above $98,000 last Friday. Despite this, the crypto market remains optimistic, buoyed by substantial inflows into $BTC ETFs and anticipation surrounding the upcoming Federal Reserve meeting.
Key Highlights:
ETF Inflows Surge: U.S.-listed spot Bitcoin ETFs saw a net inflow of $1.8 billion last week, equivalent to over 18,500 BTC. This is six times more than the 3,150 BTC mined during the same period, indicating strong institutional interest.
On-Chain Activity Increases: The number of active BTC addresses surpassed 800,000 on Sunday, signaling renewed market engagement and potential demand.
DeFi Interest Grows: Transactions involving wrapped Bitcoin ($WBTC ) have doubled since January, reflecting increased investor interest in Bitcoin-backed decentralized finance.
Potential Profit-Taking Ahead: Analysis from Glassnode suggests that as Bitcoin approaches the $100,000 mark, long-term holders may begin to realize profits, potentially slowing the rate of increase.
Looking Ahead:
Investors are closely watching the Federal Reserve's upcoming meeting. While rates are expected to remain steady, any comments on future economic projections could influence market sentiment. Additionally, ongoing U.S.-China trade discussions add another layer of complexity to the market outlook.
