Bitcoin Sees $1.04 Billion Inflows to Exchanges Amid Market Uncertainty

Bitcoin Exchange Inflows and Market Sentiment

Bitcoin saw $1.04 billion in net inflows to exchanges this week, reversing three consecutive weeks of outflows. This shift suggests hesitancy among investors, possibly driven by recent macroeconomic uncertainties. Large inflows to exchanges often indicate potential selling pressure, as traders move assets to exchanges for various reasons, including selling.

Institutional Interest in Bitcoin Grows

Bitcoin continues to attract institutional attention. GameStop, a video game retailer and meme stock, is reportedly considering investing in Bitcoin and other cryptocurrencies. This move, if finalized, would mark another significant entry of traditional companies into the crypto space.

Bitcoin Price Action and Economic Indicators

Bitcoin's price experienced volatility this week, influenced by key economic data. It surged to $98,980 following stronger-than-expected U.S. retail sales figures, which raised hopes of a potential Federal Reserve rate cut. However, the price fell to near $94,000 as investors reacted to higher-than-expected CPI data.

Federal Reserve's Impact on Bitcoin

Federal Reserve Chair Jerome Powell reiterated the central bank's focus on reducing inflation and signaled no rush to lower interest rates. Bitcoin's price reflected this uncertainty, declining 0.21% over the past 24 hours to $97,612. It remains below its 50-day simple moving average (SMA) of $98,758, indicating a potential turning point in its price trajectory.