Spot Bitcoin ETF demand remains robust, but Bitcoin could face stiff resistance near $52,000. How could altcoins react?
Bitcoin (BTC) rallied above $52,000 this week and the rally shows no signs of tiring out. That indicates continued demand for Bitcoin at every higher level. A report by on-chain data analytics firm CryptoQuant said they estimate that more than “75% of new investment into Bitcoin” comes from the spot Bitcoin exchange-traded funds.
However, nothing goes up forever. Several analysts suspect the rally is getting overheated in the near term. It is difficult to call a top when the momentum is strong, but every euphoric moment eventually peaks and is followed by a sharp correction.
Macroeconomic factors could act as a headwind for the market rally in the near term. On Jan. 16, CME Group’s FedWatch Tool was showing a 63% probability of a 25 basis points rate cut by the Federal Reserve in their March meeting, but that expectation has dwindled to 10.5% after the Consumer Price Index and the Producer Price Index numbers for January remained above market forecasts.
