The Bitcoin ETF market experienced a significant uptick following the US Fed's decision to keep interest rates unchanged, easing market concerns.
Impact of Fed's Decision on the Market
On March 20, spot Bitcoin ETFs saw a massive one-day inflow increase of over 1300%. According to SoSoValue data, US Bitcoin ETFs collectively pulled in $165.75 million in net inflows on Thursday, a significant leap from $11.8 million the previous day, marking the fifth straight day of positive inflows, with nearly $700 million entering Bitcoin ETFs during this period.
Cryptocurrency Market Response
Following the Fed's decision, Bitcoin responded by hiking 4.5% to $85,786, briefly hitting $87,431. Ethereum and Solana joined the rally with 4% and 6% gains, respectively. The total crypto market cap surged 3% to $2.947 trillion, while futures markets saw $355 million in liquidations, mostly from short positions.
Analysis and Predictions
Despite the inflow surge in Bitcoin ETFs, analysts remain divided on Bitcoin's short-term trajectory. Analyst RJT_WAGMI notes that Bitcoin is hovering at a crucial technical level, testing a descending trendline. Trader Great Mattsby believes Bitcoin is still tracking within a long-term upward trend channel. CryptoQuant CEO Ki Young Ju suggests the bull cycle might technically be over and anticipates it might take 6 to 12 months for Bitcoin to hit a new all-time high.
The sharp rise in Bitcoin ETF inflows indicates increasing interest in regulated BTC exposure, though analysts are split on the broader market outlook.
