Bitcoin (BTC) maintained its higher position on March 21 after a sudden rebound resulted in a 12% increase in its price. Following a dramatic comeback the day before, BTC showed consolidation in a narrow range. The positive reaction from Bitcoin was in response to the United States Federal Reserve’s decision to keep interest rates at current levels. Fed Chair Jerome Powell stated that it would be “appropriate” to implement rate cuts later in the year. BTC/USD managed to avoid another test of the $60,000 support level and instead surged to $68,000, completely erasing its previous losses.
Popular trader Jelle stated in his latest analysis that the objective for the day was to hold above $65,300. Shorters suffered losses during this price movement, with total short BTC liquidations reaching $70 million on March 20.
In terms of Bitcoin exchange-traded funds (ETFs), outflows from US spot Bitcoin ETFs did not significantly impact market sentiment. According to UK-based investment firm Farside, $261 million left the new ETF products on March 20, largely due to $386 million in outflows from the Grayscale Bitcoin Trust (GBTC). However, the other ETFs saw inflows, albeit much smaller compared to earlier in the month.
Market observers remained optimistic, noting that Bitcoin’s lack of reaction to three consecutive days of outflows demonstrated its resilience to ETF forces. Commentator Dyme suggested that the bounce in price despite the negative inflow indicated that the market was not dependent on ETFs to move up. Samson Mow, CEO of crypto adoption firm Jan3, predicted that all Bitcoin ETF outflows would eventually turn into inflows.
Please note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.