On March 21, Bitcoin maintained its upward trajectory, buoyed by a quick recovery that delivered a 12% increase in its price.
This uptick followed a period of consolidation within a tight range, sparked by a favorable response to comments made by the United States Federal Reserve, which opted to keep interest rates steady.
The Federal Reserve’s decision came after the Federal Open Market Committee (FOMC) meeting, with Chair Jerome Powell indicating potential rate cuts later in the year.
He stated it would be “appropriate” to initiate such cuts once there was greater confidence in inflation moving sustainably towards the 2% target.
A press release underscored this stance, emphasizing patience until there’s more certainty about the inflation trajectory.
This development helped Bitcoin avoid a drop below the $60,000 support level, propelling it to $68,000 and negating its recent losses.
The sentiment was encapsulated by a popular trader, Jelle, on X (formerly Twitter), who highlighted the importance of staying above $65,300 for Bitcoin to potentially revisit its 2021 cycle highs.
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This surge inflicted significant losses on short sellers, with CoinGlass reporting $70 million in short BTC liquidations on March 20.
Despite new withdrawals from U.S. spot Bitcoin exchange-traded funds (ETFs), market morale remained strong.
Farside, a UK investment firm, noted that $261 million exited new ETF products on March 20, largely due to $386 million in outflows from the Grayscale Bitcoin Trust (GBTC), even as other ETFs experienced inflows.
Market commentators expressed optimism amidst these developments. Dyme, a well-regarded voice, observed Bitcoin’s resilience against the backdrop of ETF outflows, suggesting the market’s independence from ETF movements.
Similarly, Samson Mow, CEO of crypto adoption firm Jan3, opined that ETF outflows would inevitably reverse, encouraging investors to plan with this future shift in mind.
These perspectives underscore a growing belief in Bitcoin’s enduring appeal and its capacity to withstand market fluctuations.
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