Bitcoin, with a sudden recovery, provided its investors with a 12% price gain and the process continues on March 21. Data from TradingView showed consolidation in a narrow range following the dramatic comeback the day before. Bitcoin reacted positively to comments from the United States Federal Reserve opting to keep interest rates at current levels.
Why Is Bitcoin Rising?
Following the Federal Open Market Committee or FOMC meeting, Fed Chairman Jerome Powell suggested that interest rate cuts would be appropriate later in the year. In a press statement accompanying the meeting, Powell stated:
“The Committee does not think it is appropriate to reduce the target range until there is more confidence that inflation is sustainably moving towards 2%.”
BTC/USD pair avoided retesting the $60,000 support during this period and instead rose to $68,000, fully recovering its previous losses.
Popular investor Jelle wrote in a recent analysis shared on X that today’s goal is to hold above $65,300.
As expected, the ones who suffered during this movement were the short sellers in the futures market. Data from blockchain analytics source CoinGlass set the total short Bitcoin liquidations for March 20 at $70 million. Meanwhile, new exits from the United States spot Bitcoin exchange-traded funds did not further diminish sentiment.
ETF Funds and Bitcoin
According to the latest figures from the UK-based investment firm Farside, on March 20, $261 million was withdrawn from new ETF products, with a significant portion of $386 million coming from Grayscale Bitcoin Trust (GBTC) exits. Other ETF funds saw entries that only constituted a fraction of the daily revenue at the beginning of the month.
Market observers maintained their optimism. Popular commentator Dyme suggested that Bitcoin’s resistance to three consecutive days of outflows indicates new resilience against ETF forces. Dyme shared the following in a part of his X post:
“Today’s rise with negative inflow means the market doesn’t depend on ETF funds to move up.”
