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Crypto market analysis of February 22, 2024

Published 22/02/2024, 07:29 pm
BTC/USD
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Bitcoin started to lose its grip around $52k as the price slowly slid on Wednesday’s Tokyo session, while ether faced selling pressure after recovering $3k and the U.S. stock index futures prepared for Nvidia’s earning call. Bitcoin’s technical outlook has also started to deteriorate slightly as the momentum decelerated. However, Nvidia’s record-breaking revenue and bullish outlook for the future sales could be bitcoin’s rescue boat in the short term. The U.S. equity market has struggled to pick up its momentum in the past couple of days, but the market sentiment could improve thanks to the chip maker’s continued outstanding performance. A rally in the U.S. tech industry could complement bitcoin’s market sentiment, and, in fact, bitcoin has shown a sign of recovery during Thursday’s Tokyo session. 

Meanwhile, spot bitcoin ETFs in the states have seen a drastic decline in their daily inflows this week. The daily net flow for the ten spot bitcoin ETFs last week had consistently topped $300m, but the net flow on the first day of this week has declined to $135m. Nevertheless, it is still approximately three times the amount of what the Bitcoin network supplies in a day, and it does not indicate that the selling pressure from the ETFs is greater than the demand. Bitcoin has already recovered the level around $52k, but its consolidation could continue. A recovery in the U.S. equity market could lift up the price of bitcoin within a current range, but $53k will likely be a tough resistance to break. 

 

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