Key Points
- Bitcoin is experiencing a bullish trend, possibly heading towards a new all-time high, fueled by ETF inflows and the FOMC decision to maintain US Federal Rates.
- Technical indicators show a positive trend, with institutional support increasing and discussions regarding a Bitcoin reserve in the US intensifying.
The decision by the Federal Market Open Committee (FOMC) to keep US Federal Rates at 4.25-4.5% has resulted in a bullish tailwind for global markets and Bitcoin. This has led to a nearly 3% surge in the total crypto market cap, reaching $3.5 trillion over the past 24 hours.
Bitcoin’s Positive Trend
Bitcoin has risen above the $105,000 mark, reclaiming its $2 trillion valuation. This represents a 2.23% increase over the past 24 hours, which is driving a potential new bull run and hinting at a new all-time high for Bitcoin.
Bitcoin’s technical analysis shows three consecutive bullish candles, bouncing back from $101,000 to the 24-hour high of $105,563. This accounts for a 4.15% recovery. The recovery run is challenging the 38.20% trend-based Fibonacci level at $105,372. However, a closing above this Fibonacci level would mark a potential breakout of a rounding bottom pattern, significantly increasing the upside potential with price targets at $112,375 and $116,085.
Technical Indicators and Institutional Support
The Supertrend indicator reveals a bullish trend in motion, increasing the likelihood of a continued uptrend. The momentum indicator reveals an uptick, supporting the ongoing uptrend. If broader market conditions sustain, Bitcoin could see a high-momentum move toward a new all-time high.
Institutional support for Bitcoin is on the rise, with the recent surge in the crypto market and the dovish push from the FOMC. On January 29, the daily total net inflow stood at $92.09 million. Out of the 12 ETFs registered in the US market, only two maintained a positive flow. Grayscale bought $106.23 million worth of Bitcoin and Fidelity purchased $18.20 million in BTC.
As institutional support rises, the discussion around a Bitcoin reserve in the US is intensifying. Cynthia Lummis, US Senator from Wyoming, has recently highlighted the growing need for a Bitcoin reserve. She suggests that the Trump administration must take quick action to establish a strategic Bitcoin reserve, which could be a step toward securing US financial dominance in the 21st century.
Market Repositioning
The Bitcoin landscape has witnessed massive shifts over the past 24 hours. Around 70 entities holding more than 1,000 BTC have either exited the network or redistributed their holdings. This suggests that major players are repositioning their portfolios, signaling a potential shift in market dynamics. Despite the redistribution of BTC holdings, Bitcoin price could likely witness high-momentum moves in the coming times.
