Bitcoin prepares for Fed’s Powell as GBTC outflows exceed $340M

Bitcoin (BTC) remains below $43,000 as the Jan. 31 Wall Street opening coincides with a major economic policy update in the United States.

Risk assets have dipped as investors eagerly await news on the progress of the web 3.0 benchmark and the potential update of LG’s webOS from version 2.0 to 3.0. The future of web 3.0, with its advancements in artificial intelligence, is highly anticipated. Many are wondering if the metaverse will be a part of this new era. Some are even speculating on the possibility of updating webOS 3.9 to 4.0 or LG’s webOS 3.0 to 4.0. Is web 3.0 already here or is it still on the horizon? Only time will tell.

Crypto market performance hindered by FOMC uncertainty

BTC price remained stagnant, trading within a $1,000 range compared to the previous day’s high, as investors awaited the Federal Reserve’s decision on interest rates and Chair Jerome Powell’s speech and press conference.

Traders were on edge, anticipating potential volatility in risk assets, as reported by Cointelegraph.

Notable trader Daan Crypto Trades observed an increase in open interest ahead of the Federal Open Market Committee meeting, while also noting that the 200-period SMA and EMA were key resistance levels to break through.

Similarly, analyst Rekt Capital predicted that BTC/USD would remain within its current range for the foreseeable future on longer timeframes.

Trader and crypto educator Nebraskan Gooner also shared a similar sentiment, cautioning against getting too excited as he analyzed the daily chart on X.

GBTC records another 8,000 BTC outflow in slight uptick

The day’s updates on the Bitcoin exchange-traded fund (ETF) landscape showed a higher amount of outflows from the Grayscale Bitcoin Trust (GBTC) compared to the previous two days.

This equated to approximately 8,000 BTC ($343 million) as of the time of writing, according to real-time data from intelligence firm Arkham.

“Slightly higher than yesterday. Yesterday saw another positive day with inflows of +$247.2M. IBIT is now matching GBTC in daily volume,” commented Daan Crypto Trades in response.

Optimistic outlooks on the ETF flows have increasingly focused on their size in relation to the daily supply of newly mined Bitcoin.

“Two days of $250 million inflows, yet the price didn’t see much of a rally yesterday. But with a few more days like this, we’ll see the kind of supply shock this will have on BTC,” noted popular commentator WhalePanda on Jan. 30, along with provisional inflow data from Farside, a UK-based investment firm.