A decrease in selling pressure on BTC:
- Negative pressures on Bitcoin and the cryptocurrency market are starting to diminish.
- The completion of the GBTC share sale by FTX bankruptcy reduces downward pressure.
- Net inflows into US Bitcoin spot ETFs signal a more favorable trading environment.
The end of selling pressure on Bitcoin?
Analysts at Coinbase have noted a decrease in downward pressure on Bitcoin, suggesting a potentially brighter future for its price. The weekly report from Coinbase explains that various technical factors, previously responsible for selling pressure on Bitcoin and the entire cryptocurrency market, are showing signs of weakening.
“Many technical factors putting downward pressure on cryptocurrency performance are starting to wane, in our opinion, which could pave the way for a more favorable trading environment in the coming weeks.”
Coinbase stated
Among these selling pressures, Coinbase mentions the conclusion of the massive sale of GBTC shares by the bankrupt FTX, a move that released the market from significant selling pressure.
The significance of macroeconomic factors
The report also highlights the growing importance of macroeconomic factors in the digital asset ecosystem. With average net inflows surpassing $200 million per day into US Bitcoin spot ETFs since January 11, the market is showing signs of substantial support.
Coinbase expects macroeconomic factors to play a key role in determining the short-term dynamics of the digital asset class, thereby contributing to improving their market performance.
These developments, combined with the possibility of a interest rate reduction by the US Federal Reserve as early as May, could foster a more favorable trading environment for Bitcoin and other cryptocurrencies. The prospect of a “soft landing” for the US economy after the recent cycle of rate hikes reinforces this hypothesis.
