Bitcoin (BTC) is down almost 2% in the current session as it continues to be bogged down by waning investor sentiment and lower risk appetite. The flagship cryptocurrency is trading just over $96,000, as buyers look to prevent a further decline. Analysts believe BTC is stuck in a consolidation phase above key support levels. However, it must reclaim $100,000 to start a fresh rally and push toward its all-time high. Bitcoin ETF Outflows Register Uptick Spot Bitcoin ETFs registered a sharp increase in outflows on February 12, recording $251 million in outflows, a 342% jump from $56 million recorded a day prior. Fidelity led the outflows, registering $101.9 million in outflows, followed by ARK and 21Shares ARKB with $97 million. However, Grayscale’s Mini Bitcoin Trust was an exception, recording over $16 million in inflows. The remaining Bitcoin ETFs did not register any substantial movement. The total trading volume for Bitcoin ETFs was $2.53 billion on February 12, with cumulative net inflows at $40.21 billion. Spot Bitcoin outflows coincided with a drop in the price of BTC following stronger-than-expected US inflation data. January’s inflation was at 3.3%, exceeding the forecasted 3.1%. With inflation higher than expected, investors anticipate only one rate cut in 2025, with the Fed likely to maintain the status quo until 2026, adversely impacting risk assets like BTC . Goldman Sachs Doubles Down On Bitcoin ETFs Goldman Sachs has doubled down on its Bitcoin ETFs, significantly increasing its spot Bitcoin ETF holdings, according to its latest 13F filing with the United States Securities and Exchange Commission (SEC). The bank now holds $1.57 billion across various Bitcoin ETFs, up from the $710 million reported in Q3. Goldman Sach’s largest exposure to BTC is with BlackRock’s iShares Bitcoin Trust (IBIT), where it holds 24.07 million shares worth $1.27 billion, an 88% jump since its last filing. According to market observers, Goldman’s positions reflect a shift in institutional outlook and investments in BTC and, to a lesser extent, ETH. Goldman Sachs’ SEC filing also reveals it added $288 million to Fidelity’s Wise Origin Bitcoin ETF (FBTC), a 105% increase from the previous quarter. Goldman also holds $3.6 million through Grayscale’s Bitcoin Trust (GBTC). Additionally, it holds a $527 million put position, a $84 million put position through IBIT and FBTC, and a $157 million call position through IBIT. US Releases Russian Bitcoin Fraud As Part Of Prisoner Exchange The US will release a Russian national as part of a prisoner exchange that brought home American schoolteacher Marc Fogel. Alexander Vinnik, a Russian national, was arrested in 2017 on charges related to the laundering of billions of dollars using BTC . A grand jury convicted Vinnick on 21 counts related to the laundering of the stolen funds. The White House has also confirmed Vinnick’s impending release. President Donald Trump has also indicated another detainee would be freed in exchange for Fogel after he was released from a prison in Russia and returned to the US. Vinnick operated the BTC -e crypto exchange and was arrested in Greece at the request of US authorities who believed he was responsible for laundering up to $4 billion through the exchange. The Russian national pleaded guilty to the charges last year and was facing up to 20 years in prison. The US Justice Department stated that BTC -e was being used by cyber criminals to transfer, launder, and store proceeds from illegal activities, hacks, ransomware attacks, identity theft, and more. The Justice Department also stated that the exchange hand had no KYC processes in place. Bitcoin (BTC) Price Analysis Bitcoin (BTC) is down nearly 2% during the ongoing session, retreating after hotter-than-expected inflation numbers adversely impacted risk sentiment. US inflation rose more than most economists predicted, impacting crypto and stock markets. The Consumer Price Index (CPI) grew 0.5% for the month, higher than the forecasted 0.3% and more than December’s 0.4% increase. The CPI rose 3% annually, slightly higher than the anticipated 2.9% and at par with December’s numbers. Core CPI rose 0.4% in January, higher than the predicted 0.3% and doubling December’s 0.2%. Meanwhile, Year-over-year core inflation is high at 3.3%, higher than the expected 3.1%. Meanwhile, Federal Reserve Chair Jerome Powell has reiterated that further rate cuts are unlikely unless the economy or inflation numbers take an unexpected turn. BTC slumped below $96,000 during the current session as it struggled to break out of its trading range. Analysts believe BTC is stuck in a consolidation phase as it eyes a breakout. However, sellers hold the upper hand as of now. BTC made a strong recovery from last Monday’s low of $91,274, rising nearly 4% to $101,579. However, it was back in the red on Tuesday, dropping 3.54% to slip below $100,000 and the 50-day SMA and settling at $97,983. Sellers retained control on Wednesday as the price fell 1.34% to $96,668. BTC attempted a move past $100,000 on Thursday, reaching an intraday high of $99,237. However, it lost momentum after reaching this level and fell to $96,641. The price briefly crossed $100,000 on Friday, surging to $100,222 before losing momentum and settling at $96,634. Source: TradingView Price action remained muted over the weekend as BTC registered a marginal increase on Saturday and a marginal decline on Sunday to settle at $96,526. Buyers returned to the market on Monday as BTC rose to an intraday high of $98,393 before settling at $97,468. However, the price fell on Tuesday, dropping nearly 2% to $95,801. BTC fell to an intraday low of $94,106 on Wednesday as selling pressure increased. It recovered from this level to register an increase of 2.17% and settle at $97,881. The current session sees BTC down nearly 2% as it struggles to stay above $96,000. BTC faces resistance at $98,000 and $100,000. If BTC can move past these levels, it could rally to $105,000 or higher. On the other hand, if sellers retain control of the session, BTC could drop to $93,000-$94,000. A break below this level could drag the price to $90,000. The RSI and MACD are bearish, indicating sellers have the upper hand. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
