Bitcoin Weekly Review: Fed Policy Shift and Capital Inflows Drive Price Rebound

This week, the Bitcoin market has shown a positive trend, with the price rising from $82562.50 to $86092.94, a weekly increase of 4.28% and a volatility of 7.71%. This marks the second consecutive week of growth, despite trading volume declining for three weeks in a row. Currently, the Bitcoin price is operating within a descending channel and is approaching the upper edge of the channel.

The interest rate meeting held by the Federal Reserve this week has become the focus of market attention. The results of the meeting show a softening of the Fed's stance, suggesting that there may be two rate cuts this year, and indicating that intervention measures will be taken if economic issues arise. This dovish stance has injected confidence into the market.

Meanwhile, there has been a significant shift in the inflow of funds into the spot Bitcoin ETF. After five consecutive weeks of net outflows, this week saw a strong net inflow, totaling $1.05 billion over five trading days. This inflow of funds has provided strong support for the price of Bitcoin, driving it to stabilize and rebound to the upper edge of the downward channel.

The stablecoin market also shows a positive trend, with an inflow of $958 million throughout the week. Overall, the cryptocurrency market saw a total inflow of $1.95 billion this week, providing important liquidity support for the market.

As the price rebounds, market selling pressure has significantly weakened, dropping to 114,992 Bitcoins. Data shows that long-term holders reduced their holdings by 3,284, while short-term holders reduced theirs by 111,709. Notably, the holdings of long-term holders increased by 73,000 coins over the week, while the exchange inventory decreased by nearly 7,000 coins. This indicates that long-term investors recognize the current price level.

The market cycle indicators show that we are currently in a rising continuation phase. However, investors still need to closely monitor the PCE data to be released by the United States next week, as it may have a significant impact on the price direction of Bitcoin.

Overall, the shift in Fed policy and the inflow of ETF funds have become the main factors driving the rebound in Bitcoin prices this week. However, given the uncertainty of the global economic situation, investors should remain cautious and closely monitor various economic indicators and market trends.