The crypto market is likely to stay in a holding pattern as traders await key developments in late January, analysts at QCP Capital suggest.
The market has been drifting lower, despite the U.S. Securities and Exchange Commission’s announcement of a Crypto Regulatory Task Force, with pressure on Bitcoin (BTC) continuing to mount, analysts at QCP Capital note.
In a research note on Jan. 23, the analysts suggested that the crypto market might to stay in a holding pattern for some time as no major market-moving events expected “before next week’s FOMC meeting.”
“With no major catalysts before next week’s FOMC meeting, the market is likely to remain range-bound until there is more clarity on how the recent weak CPI reading has influenced the Fed’s upcoming policy decisions.”
QCP Capital
For now, crypto traders seem to be in wait-and-see mode, with more clarity likely to come in February. As crypto.news reported earlier, spot Bitcoin exchange-traded funds in the U.S. faced a slowdown on Jan. 22 as BTC retraced back to around $102,000.
Per data from SoSoValue, inflows into spot Bitcoin ETFs dropped by 69% from the previous day, reaching $248.65 million on Wednesday. The entire inflows recorded on the day came from BlackRock’s IBIT which drew in $344.28 million from investors.
Kadan Stadelmann, CTO of Komodo Platform, previously told crypto.news that Trump’s early days in office could become a “sell the news” event. He noted that initial optimism in the crypto markets following Donald Trump’s election might fade, as anticipated policy changes were likely already priced in before he assumed office.
