According to Coinbase researchers, technical indicators signaling a decline in Bitcoin’s price are starting to disappear. One major source of selling pressure was the sale of shares from the bankrupt FTX exchange’s GBTC fund. However, after 22 million shares were sold, supplies quickly ran out.
The growth of Bitcoin is also being supported by the increasing interest in Bitcoin spot ETFs. In the past week alone, approximately $200 million per day has been invested in these funds. Since January 11, the total inflow of funds has reached $1.46 billion.
“We anticipate that macroeconomic factors will play a significant role in the digital asset class over the next few weeks, providing further support for market prices,” the Coinbase researchers stated.
Additionally, the easing of monetary policies in the United States could contribute to the growth of Bitcoin. It is expected that the US Federal Reserve will begin reducing the base interest rate in May.
Coinbase analysts predict that the combination of reduced selling pressure and relaxed credit policies could potentially lead to significant gains for Bitcoin and other cryptocurrencies in the second quarter of 2024.
Earlier, a comprehensive review of the cryptocurrency market was published on Bits.Media.