Bitcoin (BTC) attempted to regain losses on February 1st following a disappointing monthly close for BTC price action.
Bitcoin rebounds after ETF month with slight gains
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD experienced a $1,000 bounce from its low of $41,860 on Bitstamp.
This occurred immediately after the close of January’s candle, resulting in a 0.6% increase for the first month of 2024.
Bulls struggled to regain lost ground after a 20% drop from two-year highs of $49,000, and as February began, many predicted new lows.
In a recent update on X (formerly Twitter), trading resource Material Indicators highlighted new downward signals from its proprietary trading tools.
“Monthly charts do not necessarily mean that the price will hit a new low this month, but it does suggest that the price will not reach a new high unless the new #TradingSignals are invalidated,” one post stated.
January’s low of $38,500 marks the bottom of the 20% BTC price decline.
As previously reported by Cointelegraph, macroeconomic developments on January 31 did not help matters.
The United States Federal Reserve, while keeping interest rates in line with expectations, attempted to curb expectations of rate cuts in the first half of the year. This move is closely watched by risk-asset traders as monetary easing boosts liquidity conditions.
“When considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” an official press release stated.
According to data from CME Group’s FedWatch Tool, the odds of a cut at the Fed’s March meeting are currently at 45%.
Stability in GBTC Outflows at 6,000 BTC
As of February 1st, the Grayscale Bitcoin Trust (GBTC) has seen outflows of approximately 6,200 BTC, according to data from crypto intelligence firm Arkham.
These numbers remain consistent with recent days, but are still significantly lower than the peak of 25,000 BTC per day since its transition to a spot Bitcoin exchange-traded fund (ETF).
Meanwhile, U.S. spot Bitcoin ETFs have experienced net inflows of nearly $200 million on January 31st, as confirmed by sources including Bloomberg Intelligence.
Analyst James Seyffart noted that there have been a total of $1.46 billion in net inflows since the ETF’s launch.
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