The crypto market is expected to remain in a holding trend as traders await key developments in late January, QCP Capital analysts suggest.
The market has drifted lower, despite the U.S. Securities and Exchange Commission’s announcement of a crypto regulation task force, as pressure on Bitcoin (BTC) continues to grow, note analysts at QCP Capital.
In a January 23 research note, analysts suggested that the crypto market could remain in a holding pattern for some time as no major market-influencing events are expected “before the meeting next week’s FOMC meeting.
“With no major catalysts ahead of next week’s FOMC meeting, the market is likely to remain range-bound until there is more clarity on how recent CPI weakness has influenced the Fed’s next policy decisions.”
QCP Capital
For now, crypto traders appear to be in wait-and-see mode, with more clarity likely to arrive in February. As crypto.news reported earlier, Bitcoin spot exchange-traded funds in the United States saw a slowdown on January 22 as BTC returned to around $102,000.
According to data from SoSoValue, inflows into spot Bitcoin ETFs fell 69% from the previous day, reaching $248.65 million on Wednesday. All inflows that day came from BlackRock’s IBIT, which attracted $344.28 million from investors.
Kadan Stadelmann, CTO of Komodo Platform, previously told crypto.news that Trump’s first days in office could become a “news-selling” event. He noted that initial optimism in crypto markets following Donald Trump’s election could fade, as anticipated policy changes were likely already priced in before he took office.
