Bitcoin price is trying to stabilize after a sharp fall, indicating that the froth may be out of the system.
After years of rejections, Bitcoin (BTC) exchange-traded funds (ETFs) finally started trading last week. Speculators expected the event to boost Bitcoin’s price, but that did not happen. That led to total sales of about $4.7 billion, according to CryptoSlate research and data analyst James Van Straten
The Crypto Fear & Greed Index that has been in “extreme greed” with a score of 76 recently has plunged to neutral at 52. This is a positive sign as it shows that much of the froth may be out of the system.
With the "sell the news" event out of the way, traders are likely to focus on the macroeconomic data. All eyes are on the United States Federal Reserve, which is expected to start cutting rates as early as March, according to the CME Group’s FedWatch Tool data. If that happens, risk-assets are likely to do well.
