Bitcoin holds above $77,000 as ETF outflows extend ahead of what may be Powell’s final FOMC meeting
Bitcoin remains above $77,000 amid increasing ETF outflows and market anticipation of Jerome Powell's potential final FOMC meeting.Summary
Bitcoin is trading around $77,100 as investors prepare for the Federal Reserve's upcoming FOMC meeting. While interest rates are expected to remain unchanged, market participants are closely watching Jerome Powell's tone for signals regarding a "higher-for-longer" monetary policy regime. This meeting is particularly significant as it may be Powell's final policy meeting as chair before a leadership transition.
Institutional sentiment has shown signs of caution, with U.S. spot Bitcoin ETFs experiencing significant net outflows, including $112 million from BlackRock's IBIT. Additionally, rising exchange inflows suggest potential selling pressure that could test support levels between $74,000 and $75,000. Macroeconomic factors, such as energy market shifts and inflation concerns, are further contributing to market uncertainty.
Despite these headwinds, a Q2 outlook from Coinbase Institutional and Glassnode indicates that many investors still view Bitcoin as undervalued. However, the current environment of thin liquidity means that any unexpected signals from the Fed could trigger high volatility within the $72,000 to $80,000 range.
(Source：The Block)