Major digital assets including BTC, and ETH saw a bit of decline in prices after Federal Reserve's Powell said he does not expect rate cuts by the next FOMC meeting which is scheduled for March 2024. Some market participants have forecasted a possible drop in the high interest rates. However, the hawkish statement by Powell led to a decline in major US and other digital stocks throughout the market.
The predictions that rates would remain unchanged this month were in agreement with the Fed’s latest decision that the standard would remain between 5.25% - 5.50%. On the daily BTC/USD timeframe, the OBV fell, The decline shown by the indicator reflects investors’ cautious approach toward Bitcoin. ETH’s price movement was similar to BTC's.
If the OBV continues to fall, then BTC could drop below $42k as this would indicate a lack of buying pressure. But as of now, BTC might continue trading within a range of $42.3k and $43.7k. The positive development is that Grayscale's GBTC massive sell-off is getting reduced drastically and the selling pressure is getting absorbed by other BTC ETF applicant firms including Blackrock, Fidelity etc.
As of now, at the time of writing this article, BTC is trading at around $43.2k with a market capitalization of $845 Billion and is up by 2.5% in the last 24 hours.