Key Points
- Analysts predict the crypto market will remain in a holding pattern awaiting key developments in late January.
- Bitcoin (BTC) continues to face pressure despite the announcement of a Crypto Regulatory Task Force by the U.S. SEC.
The current state of the cryptocurrency market is expected to remain stagnant as traders eagerly anticipate significant events towards the end of January, according to market analysts at QCP Capital.
Despite the announcement of a Crypto Regulatory Task Force by the U.S. Securities and Exchange Commission, the market has been experiencing a downward trend. This is particularly evident in the case of Bitcoin (BTC) which continues to face increasing pressure, as mentioned by QCP Capital analysts.
Market Predictions
In a recent research note dated January 23, the analysts suggested that the crypto market is likely to remain in a holding pattern for some time. They do not foresee any significant market-moving events until next week’s FOMC meeting.
The analysts stated, “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.”
Traders in Wait-and-See Mode
Crypto traders seem to be adopting a wait-and-see approach, with more clarity expected to emerge in February. It was reported that spot Bitcoin exchange-traded funds in the U.S. experienced a slowdown on January 22 as BTC retraced back to around $102,000.
According to data from SoSoValue, inflows into spot Bitcoin ETFs fell by 69% from the previous day, reaching $248.65 million on Wednesday. The entire inflows recorded on the day were from BlackRock’s IBIT, which attracted $344.28 million from investors.
Kadan Stadelmann, CTO of Komodo Platform, previously suggested that the early days of Trump’s presidency could become a “sell the news” event. He noted that the initial optimism in the crypto markets following Donald Trump’s election might dissipate, as anticipated policy changes were likely already factored into the price before he took office.
