Bitcoin Next Move?
Late in U.S. trading hours Wednesday, the price of bitcoin (BTC) hovered below $66,000, remaining relatively stagnant despite a couple of minor rallies that were promptly met with selling pressure. At $65,800, bitcoin showed no significant movement over the past 24 hours. Notably, bitcoin cash (BCH) and litecoin (LTC) experienced declines of around 10%.
Bitcoin saw two brief rallies, reaching approximately $66,500 on Wednesday. One rally followed a softer-than-expected report on March growth in the U.S. service industry, while the other occurred after Federal Reserve Chairman Jerome Powell reiterated expectations for rate cuts this year, despite persistent strength in both inflation and the economy.
The bulk of bitcoin's rally in 2024 occurred from mid-February to mid-March, fueled by daily additions of 5,000-13,000 bitcoin from spot ETFs, despite significant selling by Grayscale's GBTC. However, recent activity has witnessed continued large-scale selling through GBTC, while purchases into other ETFs have slowed. On several occasions, net flows into the spot ETF group as a whole have turned negative.
Meanwhile, bitcoin's price has dipped around 10% from its record high of nearly $73,500 reached on March 12th.
