BTC at $43k: Bitcoin Bulls Back in Charge After $100 Million Liquidation Spree

Peter Brandt Highlights Bitcoin Price Pattern Key to Keeping BTC’s Bull Trend Healthy

Bitcoin appears to be regaining its footing after a rocky start to 2024, with price bouncing back above $43,000. Several key developments suggest growing stability and mainstream acceptance for the cryptocurrency.

TLDR

Bitcoin price rebounded back above $43,000 as the market expects the Fed to pause rate hikes at this week’s FOMC meeting. There are also signs that outflows from Grayscale’s spot bitcoin ETF may be slowing.
Bitcoin suffered some bearish price action after the SEC’s spot ETF decision, but it has since rebounded. Data shows bitcoin open interest recently increased by $350 million and investors moved $220 million worth of BTC into long-term storage.
Over $100 million was liquidated in the crypto market after Bitcoin neared $44,000, pushing its price to a 3-week high. Most of the liquidations were shorts, while altcoins like Ethereum also saw significant liquidations.

Driving bitcoin’s resurgence is an expected pause in Federal Reserve interest rate hikes at this week’s FOMC meeting. With rates potentially peaking, investors seem to be rotating back into risk-on assets like bitcoin.

“The Fed is already expected to pause rates, so this week’s FOMC meeting is probably mostly priced in,” said Mathew Graham of Ryze Labs. “However subsequent to a pause, should the Fed lower interest rates more than is already anticipated this would absolutely be bullish for bitcoin prices.”

Outflows from Grayscale’s spot bitcoin ETF also show signs of slowing, indicating institutional managers may be ramping up investment in the new product. Analyst James Seyffart noted the possibility of Grayscale competitor ETFs soon exceeding it in volume. “Institutional interest in bitcoin will continue to develop,” according to analysts at Ryze Labs.

Bitcoin BTC Price

Recent on-chain data affirms building momentum as well. Bitcoin open interest on futures recently increased by over $350 million in just three days according to Coinglass. Meanwhile over $220 million worth of BTC was moved off exchanges into long-term storage from January 25-29 based on CryptoQuant data. This deficit in supply could drive further price increases if demand continues rising.

Bitcoin appears to be stabilizing around $43,000 as investor sentiment improves. But the path forward remains precarious, evidenced by over $100 million in liquidations last week when BTC approached $44,000. Bitcoin dominance sits around 52.5% according to CoinGecko, with altcoins like Ethereum also capturing liquidity from short traders during recent volatility.

With tailwinds from institutional adoption and a potential Fed pause on rates, bitcoin seems to be finding its legs in 2024. But users should remain vigilant against phishing efforts as the crypto industry comes into focus for mainstream finance.

The post BTC at $43k: Bitcoin Bulls Back in Charge After $100 Million Liquidation Spree appeared first on Blockonomi.

Steve Beckford

Steve Beckford

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,570.37
ethereum
Ethereum (ETH) $ 3,777.28
tether
Tether (USDT) $ 0.999268
bnb
BNB (BNB) $ 595.94
solana
Solana (SOL) $ 168.64
staked-ether
Lido Staked Ether (STETH) $ 3,773.14
usd-coin
USDC (USDC) $ 0.999582
xrp
XRP (XRP) $ 0.521819
dogecoin
Dogecoin (DOGE) $ 0.161133
cardano
Cardano (ADA) $ 0.449518
shiba-inu
Shiba Inu (SHIB) $ 0.000027
the-open-network
Toncoin (TON) $ 6.49
avalanche-2
Avalanche (AVAX) $ 36.62
chainlink
Chainlink (LINK) $ 18.31
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,503.35
tron
TRON (TRX) $ 0.111548
polkadot
Polkadot (DOT) $ 7.07
bitcoin-cash
Bitcoin Cash (BCH) $ 469.25
uniswap
Uniswap (UNI) $ 10.77
near
NEAR Protocol (NEAR) $ 7.46
matic-network
Polygon (MATIC) $ 0.703041
litecoin
Litecoin (LTC) $ 84.30
pepe
Pepe (PEPE) $ 0.000015
fetch-ai
Fetch.ai (FET) $ 2.26
internet-computer
Internet Computer (ICP) $ 12.22
leo-token
LEO Token (LEO) $ 5.96
dai
Dai (DAI) $ 0.999729
wrapped-eeth
Wrapped eETH (WEETH) $ 3,926.96
ethereum-classic
Ethereum Classic (ETC) $ 30.16
aptos
Aptos (APT) $ 9.23
render-token
Render (RNDR) $ 10.31
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,729.43
hedera-hashgraph
Hedera (HBAR) $ 0.101793
dogwifcoin
dogwifhat (WIF) $ 3.48
cosmos
Cosmos Hub (ATOM) $ 8.59
immutable-x
Immutable (IMX) $ 2.23
arbitrum
Arbitrum (ARB) $ 1.14
kaspa
Kaspa (KAS) $ 0.138672
mantle
Mantle (MNT) $ 0.998714
filecoin
Filecoin (FIL) $ 5.82
crypto-com-chain
Cronos (CRO) $ 0.116943
stellar
Stellar (XLM) $ 0.106358
ethena-usde
Ethena USDe (USDE) $ 0.999440
the-graph
The Graph (GRT) $ 0.308073
first-digital-usd
First Digital USD (FDUSD) $ 0.998001
blockstack
Stacks (STX) $ 1.99
arweave
Arweave (AR) $ 43.55
bittensor
Bittensor (TAO) $ 408.97
okb
OKB (OKB) $ 45.42
optimism
Optimism (OP) $ 2.49