Market watchers believe this pullback reflects concerns over potential market swings linked to the Federal Open Market Committee (FOMC) decision. Uncertainty over interest rates and economic signals has prompted many investors to reduce exposure to riskier assets like Bitcoin.
Despite the ETF outflows, blockchain data points to rising interest elsewhere. Coinglass reports net spot inflows of $9.72 million, showing that some buyers are still active. This suggests institutions might be shifting capital into direct spot markets instead of ETFs. The move could be aimed at capturing short-term gains during price swings around the Fed announcement.
Bitcoin’s price has responded positively. At press time, BTC trades at $96,679, up 2% in 24 hours. Analysts note a Balance of Power (BoP) reading of 0.10, signaling buyer strength in the market. A positive BoP means buyers are in control, and bullish momentum is likely building.
If demand continues and the Fed’s decision calms markets, BTC could aim for $102,080. But if volatility spikes and investors rush to exit, prices may fall below $96,187 and head toward $92,048.
The next few hours could be key for Bitcoin’s short-term path as the market awaits the Fed’s move.
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2025-05-07 05:17:31
