Why is Bitcoin price up today? The main reasons for the Bitcoin price increase

Over the last day, Bitcoin’s price has risen by 10%. It went from a low of $60805 per Bitcoin to a maximum of $68,250. The price increase can be traced to a number of factors including the Federal Open Market Committee’s (FOMC’s) yesterday meeting, Coinbase Premium’s notable shift, and Bitcoin breaking out from its downtrend channel.

Jerome Powell’s Dovish Remarks at FOMC 1 Fuels the Optimism

You can also read about the advantages of using reported yesterdayThe macro-environment for Bitcoin and cryptocurrency was brought back to the forefront after the US Consumer Price Index data (CPI), and Producer Price Index data (PPI), which were hotter than anticipated. Investors appeared to have reduced the risk of their positions before the FOMC meeting. The outcome was positive for investors.

Bitcoin’s rise can be traced to the Federal Reserve FOMC Meeting, at which Chairman Jerome Powell made a speech interpreted by the markets as dovish. Investors have been reassured by the Fed’s position, particularly in light of recent data on inflation.

Crypto analyst Furkan Yildirim provided Summary of FOMC key points “The ‘Dot Plot’ projections show that the median official expects three quarter-percent cuts in 2024 […] The FOMC voted unanimously to leave the federal funds rate unchanged […] The median forecast for PCE inflation remains unchanged at 2.4% for 2024 […] Officials have also raised forecasts for where they see interest rates in the long term.”

These announcements were immediately greeted with optimism in both the traditional financial markets and Bitcoin. QCP Capital Ltd., a Singapore based trading company for crypto assets, highlighted The FOMC has a dovish stance. “1. In Powell’s press conference speech, he was not concerned about the high inflation numbers in Jan and Feb. 2. In the dot plot, more members shifted their projection to 3 cuts in 2024 (9 members vs 6 in Dec).”

The Analyst Ted (@tedtalksmacro), further emphasized Positive implications “FOMC summary: – 3x rate cuts happening this year despite inflation remaining above 2% (Fed expects core PCE at 2.6%). Growth outlook upgraded. Send it.”

#2 Coinbase Premium Turns Green: A Sign Of Spot ETF Demand

Coinbase Premium moving into positive territory is another important factor that influences Bitcoin’s movement. The price of Bitcoin has been moving up since yesterday. ETF flows Bitcoin was down again on the third consecutive day. Coinbase Premium The price of Bitcoin was further boosted by the spot Bitcoin ETFs.

CryptoQuant analyst Maartunn remarked: “Coinbase Premium is positive again. It’s around +$50. Beautiful.” Coinbase’s premium is important for BTC prices in the last few months, as it represents the demand of spot Bitcoin ETFs one day before actual figures are published. Coinbase custodies eight of 11 As a result, you can identify Bitcoin ETFs. This is about 90% of all Bitcoin ETFs. The Coinbase Premium is therefore crucial to a sustained rally.

Coinbase Premium now has positive numbers. Around +$50. The price is around $50.😁 https://t.co/YJhYLdbipc pic.twitter.com/Hd3xXsg7Bq

— Maartunn (@JA_Maartun) March 20, 2024

Yesterday, GBTC reported $386.6 Million in outflows. Blackrock had only $49.3 millions of inflows and Fidelity $12.9. This was one of the weakest inflow days for the leading Bitcoin ETFs so far – a huge disappointment.

WhalePanda, a well-known crypto analyst, made the following comment: “We pumped after the FOMC and overall it was better than what boomers expected. Price is now dumping on the news of negative flows but I think they’ll be in for a nice surprise tomorrow.”

ETF flows yesterday were again negative, marking the third consecutive time.$GBTC Outflows of $386.6 millions worth.
Blackrock has only received $49.3 millions in new money, while Fidelity is at $12.9.

The actual flow will be evident only in the numbers of tomorrow.

We pumped… pic.twitter.com/WVTntqG1by

— WhalePanda (@WhalePanda) March 21, 2024

BTC price breaks out of downtrend channel #3

Analysts and traders have been drawn to the breakout of Bitcoin from the parallel channel downtrend. Daan Crypto Trades emphasized the importance of this move on X. “Bitcoin tested its 4H 200MA/EMA and has been holding nicely there and broke out. Still watching this channel which will dictate BTC’s next move.”

#Bitcoin It has been holding well and is now breaking out.

You are still watching the channel that will dictate $BTC‘s next move.

Bulls want this to consolidate and stay above the channel. pic.twitter.com/94etUo6YAR

— Daan Crypto Trades (@DaanCrypto) March 20, 2024

Daan’s chart shows the BTC price consolidating within a downtrend channel since more than a fortnight. Yesterday’s price surge pushed the BTC above the downtrend channel. A retest of the price is currently taking place. BTC’s price may rise higher if the retest is successful.

BTC is currently trading for $67,397.

Featured Image created using DALLE and chart from TradingView.com

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