Tuesday, 02 January 2024 12:17 GMT

Crypto's Quiet Pivot: Flows Improve As Fed Nears, Bitcoin Holds Line


(MENAFN- The Rio Times) Crypto didn't surge; it steadied. A softer dollar ahead of the U.S. Federal Reserve's decision kept risk appetite intact, and spot bitcoin exchange-traded funds logged another day of net inflows-small but important. That flow support, more than headlines, is why dips have been brief.
The tape in one glance
At the morning snapshot: Bitcoin −1.19% at 114,231; Ether −1.96% at 4,118; XRP +0.38% at 2.641; Solana flat at 202.54; Litecoin +2.91% at 102.61; BNB −2.12%; Dogecoin −2.68%.

Venue turnover leaned to ETH/USDT (~$311 million) and BTC/USDT (~$261 million), a sign of cautious positioning into the Fed.

Under the surface, catalysts ruled: Hedera jumped +15.93% and Litecoin outperformed, while thin names swung wildly (RIVER +18.95%, TRUMP +8.34%; COAI −29.36%, B2 −25.21%, PI −21.05%).
The story behind the story
Two forces matter more than the day's candles. First, liquidity expectations: if the Fed cuts and hints at a gentler balance-sheet path, crypto benefits not because of“risk-on mood,” but because dollar liquidity and term premia drive demand for scarce, 24/7 assets.

Second, flows: steady ETF buying doesn't need to be huge; it just has to be reliable. That mechanical bid has begun to offset miners' and traders' supply-one reason bitcoin's pullbacks stall sooner than headlines suggest.



Ether's recent fund outflows help explain its lag, but early-week trackers show tentative stabilization.
What the charts say
On the 4-hour bitcoin chart, price hugs the upper Bollinger band while momentum (MACD, RSI) cools-textbook pause. On the daily, trend quality has improved: price sits above key moving averages, MACD flips positive, RSI in the mid-50s.

Translation: the market favors shallow dips over deep breaks if 111,000 holds on daily closes. Resistance: 114,700–116,300. Support: 113,000 then 111,000.
Why this matters to readers abroad
Crypto remains a real-time gauge of global liquidity. This week, its message is clear: if policy eases and ETF demand stays net positive, bitcoin can keep grinding, even as altcoins diverge around specific catalysts.

If the dollar firms and flows falter, watch 113,000–111,000 for the next test of conviction.

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The Rio Times

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