Summary:
US BTC-spot ETF market shows positive net inflows, totaling $120.4 million.
Speculation rises over Ripple's future amid SEC developments.
Senator Cynthia Lummis proposes a Bitcoin Act for government acquisition of one million BTC.
BTC price increased by 2.27%, closing at $103,667.
Inflation data and ETF flows are crucial for BTC's price direction.
US BTC-Spot ETF Market Bolsters Bitcoin Demand
The US BTC-spot ETF market is showing promising signs, with expectations of net inflows for a second consecutive day as of January 29. According to Farside Investors, BTC-spot ETF issuers, excluding BlackRock’s iShares Bitcoin Trust, reported a remarkable $120.4 million in total net inflows.
Investor sentiment is influenced by the Federal Reserve's rate path, but interest has somewhat diminished following recent executive orders from President Trump concerning cryptocurrencies. The President's establishment of a Presidential Working Group on Digital Asset Markets raised hopes for a Strategic Bitcoin Reserve (SBR), though the focus has been more on assessment rather than implementation.
Senator Cynthia Lummis has taken steps to propose the Bitcoin Act, which aims for the US government to acquire one million BTC over five years, maintaining a holding period of 20 years. This strategy would significantly enhance BTC's supply-demand dynamics. Legal expert John E. Deaton has predicted that BTC could reach $1 million much sooner than anticipated if the Bitcoin Act is passed.
Bitcoin Price Outlook
On January 29, BTC surged by 2.27%, recovering from a previous loss of 0.69% and closing at $103,667. The price trajectory of BTC will largely depend on forthcoming inflation data, ETF flows, and legislative developments in the crypto space.
- Softer inflation numbers could lead to increased US BTC-spot ETF inflows, potentially pushing BTC beyond its record high of $108,231.
- Conversely, higher inflation and ETF outflows could drive BTC down toward $95,000.
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