Reaching $48,500 at the end of last week Bitcoin, showed a strong rise. However, there was later a modest decline near $48,000. The latest pause in the cryptocurrency reaching the $50,000 level is due to investors eagerly awaiting the developments regarding the CPI data to be announced this month.
US Economic Data and FOMC Speeches Expected
Investors are eagerly awaiting the important economic indicators, January Consumer Price Index (CPI) and Producer Price Index (PPI) data to be announced from the United States this week. In addition, the speeches of several members of the Federal Open Market Committee (FOMC) regarding the central bank’s monetary policy outlook will be carefully monitored.
Market sentiment is focused on the possibility of the FOMC keeping interest rates steady at its March 20 meeting. Currently, the Chicago Mercantile Exchange (CME) assigns an 82.5% probability of this outcome, indicating the expectation of a stable interest rate environment in the near term.
Prominent crypto- analyst Michael van de Poppe emphasized that Bitcoin shows strong resilience in the $48,000 to $50,000 range. Van de Poppe sees Bitcoin’s successful holding up against these resistance points as a positive indicator and sees signs of a strengthening trend in the market fueled by increased institutional interest. He predicts that before the upcoming halving event, Bitcoin could reach higher price levels, targeting the $53,000 to $57,000 range.
Bitcoin ETF Entries continue strongly. Nine spot Bitcoin ETF funds have attracted over $9 billion in investments since their launch on January 11. However, more than 66% of these inflows originate from large financial institutions such as BlackRock and Fidelity. Caroline Bowler, CEO of BTC Markets Pty, stated in a statement to Bloomberg Television that signs of increased institutional fund flows are reflected in the asset class.
Bitcoin Whale Accumulation on the Rise
Famous crypto analyst Ali Martinez revealed that Bitcoin whales are on a buying spree and have accumulated over $6.16 billion, equivalent to 140,000 Bitcoins, in the last three weeks alone.
Koinfinans.com As we reported, Martinez stated that despite the ongoing skepticism that exists around Bitcoin, it is extremely important to recognize the flexibility of support levels that can overcome resistance. Although he noted that a temporary price correction may be possible, he emphasized the need to realize that the next important resistance level for BTC lies at around $57,000.
