In its latest weekly market report, Coinbase has signaled a potential easing of the downward pressure on Bitcoin and the broader cryptocurrency market, indicating the emergence of a more favorable trading environment. Analysts highlight the reduction of several technical factors that have previously impacted cryptocurrency performance.
A pivotal development contributing to the alleviation of downward pressure is the completion of FTX’s bankruptcy estate sale of substantial GBTC (Grayscale Bitcoin Trust) assets. Coinbase analysts refer to a recent CoinDesk report indicating that the bankruptcy estate divested 22 million GBTC shares. Additionally, the report underscores that net inflows into spot Bitcoin ETFs in the US averaged over $200 million per day in the past week, with total net inflows since January 11 reaching $1.46 billion.
Looking ahead, Coinbase analysts anticipate a shift where macroeconomic factors will play a more influential role in supporting cryptocurrency performance in the coming weeks. The report underscores a significant announcement during the Federal Reserve’s (FED) last interest rate decision press conference, revealing a postponement of the central bank’s quantitative tightening program until the next Federal Open Market Committee meeting scheduled for March 19-20. This suggests the potential initiation of the FED’s monetary expansion cycle around May 1, with plans for the conclusion of the central bank’s balance sheet reduction in June.
