The cryptocurrency market is likely to remain in a holding pattern as traders await key developments in late January, analysts at QCP Capital note.
The market has been drifting lower, despite the SEC announcing a crypto regulatory task force, as pressure on Bitcoin (BTC) continues to build, analysts at QCP Capital note.
In a Research note On January 23, analysts noted that the cryptocurrency market may remain in a flat pattern for some time as no major market-moving events are expected to occur “before next week’s FOMC meeting.”
“With no major catalysts ahead of next week’s FOMC meeting, the market will likely remain range-bound until there is more clarity on how the recent weak CPI reading will impact the Fed’s upcoming policy decisions.”
QCB Capital
For now, cryptocurrency traders appear to be in a wait-and-see mode, with more clarity likely to come in February. As crypto.news previously reported, US Bitcoin ETFs faced a slowdown on January 22 as Bitcoin fell to around $102,000.
According to data from SoSoValue, inflows into spot Bitcoin ETFs fell 69% from the previous day, reaching $248.65 million on Wednesday. The entire inflows recorded during the day came from BlackRock’s IBIT which attracted $344.28 million from investors.
Kadan Stadelman, CTO at Comodo, previously told crypto.news that Trump’s first days in office could become a “news selling” event. He noted that the initial optimism in cryptocurrency markets following the election of Donald Trump may fade, as the expected policy changes were likely already priced in before he took office.
