TL;DR
Bitcoin has recently caught the green wave of the cryptocurrency market, with its price rising to a three-week high of almost $44,000. In the following lines, we will explore some important metrics and upcoming events that hint the uptrend might carry on in the following days.
According to CryptoQuant, Bitcoin exchange netflow has been predominantly negative in the past week, charting a massive red candle today (January 30). Shifting from centralized exchanges toward self-custody methods is considered bullish since it reduces the immediate selling pressure.
In addition, data shows that BTC’s open interest has been on the rise since January 23, currently standing at over $10.5 billion. The development has historically influenced enhanced volatility for the asset in the short term.
Last but not least, the price of the primary cryptocurrency could be positively impacted by the Federal Open Market Committee (FOMC) meeting scheduled for this week. The US central bank is expected to keep interest rates unchanged at 5.25%-5.50% or even start pivoting on its aggressive anti-inflationary politics.
Recall that its actions have resulted in severe volatility for Bitcoin over the past few years. The asset’s value has dipped numerous times following rate hikes or has headed north when there were no amendments to the benchmark.
Multiple experts, including Fundstrat’s Tom Lee, have argued that the Fed is done lifting the interest rates for this cycle. Others, like the former White House official Anthony Scaramucci and the CEO of Galaxy Digital Mike Novogratz, believe the end of that policy would be a major bullish factor for BTC.
