- The BlackRock Bitcoin ETF now holds over $2 billion in BTC as inflows offset GBTC outflows of $360 million per day.
- Bitcoin is trading around $42,800 ahead of the FOMC meeting this week, which markets expect will hold rates steady but potentially signal cuts in March.
- The Fed’s upcoming decision on interest rates is pivotal for Bitcoin’s price outlook, as rate cuts could boost crypto markets.
Bitcoin is entering a pivotal week for its price outlook as the Federal Reserve meets to decide on interest rates. The leading cryptocurrency is seeing positive signs from exchange-traded funds (ETFs) as the BlackRock iTrust Bitcoin ETF holdings surpass $2 billion. Meanwhile, outflows from the Grayscale Bitcoin Trust (GBTC) have slowed down by 50%.
BTC Price Holds Above $42,000 Ahead of FOMC Meeting
Bitcoin is trading around $42,800 on January 29 as it clings to the $42,000 level following its rise to $42,800 over the weekend. The largest cryptocurrency faces familiar resistance levels as outflows resume from GBTC. However, these totaled $360 million on the day, representing a 50% decrease from peak daily outflows.
BlackRock’s Bitcoin Trust Hits $2 Billion as Inflows Offset GBTC Outflows
According to data, the BlackRock iShares Bitcoin Trust (IBIT) ETF held over 52,000 BTC worth over $2 billion on January 29. This highlights the significant buy volume compared to Bitcoin’s daily emission rate of only 900 BTC. Overall, Bitcoin spot ETFs saw $759 million of net inflows on January 26 despite the GBTC outflows.
Markets Brace for Fed Decision on Interest Rates
The U.S. Federal Reserve’s upcoming decision on interest rates is the highlight of the week. Markets widely expect the Fed to remain on hold at this meeting but see a 46% chance of a rate cut in March. The FOMC meeting could set the stage for rate cuts from March onward, which could quickly move markets depending on Fed messaging.
