Bitcoin Prices Stabilize Amid Inflation Concerns

Bitcoin Prices Stabilize Amid Inflation Concerns as Tether Expands and Kraken Resumes Staking Services

Bitcoin prices have stabilized in recent weeks, with the cryptocurrency trading around the $109,588 level. This stability comes amidst growing institutional interest and mixed investor sentiment. Despite the bullish momentum, retail investors have been taking profits, influencing market dynamics as February begins.

Institutional adoption of Bitcoin continues to flourish, with significant inflows into spot ETFs. According to Eric Balchunas, a senior ETF analyst at Bloomberg, $4.2 billion in inflows were recorded for Bitcoin ETFs in just the first three weeks of January, representing a notable 6% of total ETF inflows during that period.

The 20-day exponential moving average (EMA) is currently positioned at $102,198, providing a support layer that is crucial for sustaining upward momentum. The relative strength index (RSI) has remained within positive territory, suggesting a prevailing bullish sentiment.

The robust inflow into Bitcoin ETFs highlights a shift in market dynamics, where institutional investors are increasingly embracing cryptocurrency as a viable asset class. This trend supports the bullish outlook, particularly as Bitcoin approaches its all-time high. However, this enthusiasm contrasts sharply with retail investor behavior, as evidenced by the reported outflows of 6,000 BTC to exchanges like Binance, indicating profit-taking amidst the upward rally.

Stablecoin issuer Tether has reported a significant profit boost, driven by rising Bitcoin and gold prices. The company generated $13 billion in net profit for 2024, with assets topping $143.7 billion. Tether boosted its Bitcoin reserves to 84,000 BTC amid $94.5 billion in US Treasuries. The USDT market cap reached $140 billion with 400 million users, despite EU regulatory challenges.

Kraken, a major cryptocurrency exchange, has announced that it will delist USDT and non-MiCA-compliant stablecoins in the European Economic Area (EEA) by March 31, 2025. The delisting process will begin in February 2025, with full halt of spot trading on March