Market Braces for Volatility as Major Players Shift Positions
In a dramatic shift that has caught the crypto market’s attention, Bitcoin (BTC) is holding steady around its crucial 200-day moving average of $84,000 as a notorious Hyperliquid whale has closed their massive short position worth hundreds of millions. This development comes as the market anxiously awaits the Federal Reserve’s upcoming rate decision.
ETF Flows Signal Market Momentum Shift
In a significant turn of events, U.S.-based spot Bitcoin ETFs recorded positive inflows for two consecutive days, attracting $275 million on Monday following Friday’s $41 million influx. This marks the first back-to-back inflows since February 7, according to Farside Investors data.
“This data reinforces the narrative that ETF-driven selling pressure is exhausting,” explains Valentin Fournier, analyst at BRN. “If this trend continues, we could see inflows gradually build momentum, further supporting bitcoin’s price.”
Fed Decision Looms Large
The cryptocurrency market is bracing for potential volatility as the Federal Reserve prepares to announce its rate decision on Wednesday. According to Ryan Lee, chief analyst at Bitget Research, “Post-FOMC, Bitcoin is expected to trade within the range of $80,000 to $86,000 with 80% confidence, while Ethereum is projected to fluctuate between $1,800 and $2,100.”
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Altcoin Market Shows Signs of Life
While Bitcoin consolidates, smaller cryptocurrencies including CAKE, TKX, OKB, and ATOM have contributed to market optimism with positive performances. Notably, SUI struggled to maintain momentum following Monday’s 6% surge, which was driven by asset managers’ ETF filings with the SEC.
Market Outlook
Despite some analysts declaring the end of the bitcoin bull run, on-chain data suggests otherwise, pointing to exhaustion in ETF-led selling pressure. The combination of positive ETF flows, major position closures, and the upcoming Fed decision creates a complex market environment that could determine the next significant move in cryptocurrency prices.
Source: CoinDesk