Bitcoin ETF Inflows Sluggish Despite Fed's Stance; BTC Holds Above $105k Ahead of PCE Report

Bitcoin ETF inflows remained weak on Jan. 29, with a total of $92.09 million in inflows, primarily driven by Grayscale's mini Bitcoin Trust and Fidelity's FBTC. BlackRock's IBIT, the largest Bitcoin ETF, experienced $92.09 million in outflows, ending its 9-day inflow streak. The total trading volume for investment products stood at $3 billion, with net assets amounting to $121.36 billion, representing 5.88% of the total Bitcoin supply.

The Federal Open Market Committee's decision to keep interest rates unchanged on Wednesday did not significantly impact Bitcoin ETF inflows. The Fed maintained the federal funds rate at 4.25% to 4.50% due to "somewhat elevated inflation," aligning with analysts' expectations. Despite the dovish stance, Bitcoin (BTC) rose 3.1% over the past day, trading at $105,366 at press time.

Market participants are now awaiting the upcoming Personal Consumption Expenditures (PCE) report, scheduled for release this Friday. This report is expected to serve as the next significant catalyst for risk assets, including Bitcoin. Until then, Bitcoin is likely to consolidate within its current range, with $105k as a critical breakout level and $108k as the next major upside target if Friday's data favors risk assets.