Bitcoin, Ethereum, Dogecoin Trade Mixed As Investors Await Federal Reserve's Rate Decision: Analyst Says Whales On A BTC Accumulation Spree

Major cryptocurrencies traded mixed on Tuesday evening as investors awaited the Federal Reserve’s upcoming rate decision scheduled for Wednesday.

What Happened: The two-day policy meeting of the U.S. Federal Reserve commenced on Tuesday, and the outcome is expected on Wednesday, January 31. Although it is predicted that the Fed will maintain unchanged rates at this time, there are strong expectations that the US central bank will convey indications about its intentions to begin reducing rates.

The consensus among most experts now is that the US Federal Reserve is likely to initiate rate cuts starting in May or June. This anticipation considers the robust US job market and inflation, which continues to exceed the Fed’s 2 per cent target.

Bitcoin ETFs saw a robust kickoff to the week, with net inflows into the funds surging back above $1 billion, as reported by JPMorgan. According to analyst Kenneth Worthington’s note to clients on Tuesday, the Bitcoin ETFs offered by BlackRock and Fidelity experienced significant inflows on Monday and are continuing to lead the market.

"Monday marked the best flow day in over a week as the newly launched ETFs have struggled to counteract Grayscale's outflowing GBTC in recent days. Net flows were supported by BlackRock's IBIT and Fidelity's FBTC sales reaccelerating near their running averages of $180-200mn inflows/day," the note said.

Monday’s market movements resulted in net inflows of $1.05 billion, although this was offset by the $5.2 billion reduction reported by Grayscale, as per data from JPMorgan.

The significant inflows observed for new ETFs are noteworthy, indicating a heightened competition in the fee structure among these funds. In a notable development, the Invesco Galaxy Bitcoin ETF, which currently holds approximately $300 million in assets under management, is set to transition to a management fee of 0.25% following the conclusion of its waiver period. This adjustment, as revealed in a filing on Monday, represents a reduction from the previously anticipated 0.39% management fee.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $1.67 trillion, showing a 2.63% increase in the past 24 hours.

The S&P 500 concluded Tuesday nearly unchanged as investors on Wall Street awaited the latest Federal Reserve decision on interest rates. The benchmark inched down by 0.06% to conclude at 4,924.97. Meanwhile, the Dow Jones Industrial Average surged by 133.86 points, or 0.35%, to reach a closing point of 38,467.31, achieving its seventh record close for the year. The Nasdaq Composite retreated by 0.76% to settle at 15,509.90.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analyst, Michael Van de Poppe, maintains that the scenario regarding Bitcoin remains unchanged.   "We’ve hit the $48K target, we’ve hit the $38K target. Time to consolidate and let altcoins run."

Pseudonymous trader, The Flow Horse, predicts that the forthcoming Bitcoin halving in April is poised to propel the value of BTC.

"Just a little advice, as most people in this market are obsessed with intraday activity and try to emulate their favorite traders, riding every little move the market offers: we are on the cusp of the most reliable and popular narrative that this market has seen to this point. It's a small sample size, but it's all we have. Whether you get in at $43,000 or $33,000, higher prices going into the halving and right after are more likely. This boat will lift all others."

On-chain analyst Ali Martinez said "While some shivered with fear during the recent price correction, Bitcoin whales were accumulating more BTC!  Around 67 new entities now hold 1,000 BTC or more, marking a 4.50% increase in two weeks."

Photo by CMP_NZ on Shutterstock

Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users