Bitcoin and other major cryptocurrencies have pulled back by about 2% as investors await the Federal Reserve's interest rate decision. The market is also reacting to mixed exchange-traded fund (ETF) flows, with spot Bitcoin ETFs experiencing $64 million in outflows while Ethereum ETFs saw $22.5 million inflows.
Despite this decline, Bitcoin remains above $65,000, a price that has been sustained despite the Bank of Japan's rate hike tightening global liquidity. Analysts expect Bitcoin to consolidate before potentially rallying sharply, but some caution that summer may bring lower volatility and liquidity.
In related news, BlackRock's Rick Rieder believes that Bitcoin will go 'considerably higher' over the long term, despite its recent price drop of about 50% from its peak. He highlighted that Bitcoin is competing for investor capital with fast-growing AI stocks and income-focused investments.