Bitcoin Surges on Fed Hints, Institutional Selling Meets OTC Buying Frenzy
1min read Bitcoin (BTC) price experienced a mixed trading session, with various market participants displaying divergent behavior. The cryptocurrency rose 2.1% following the Federal Reserve's January meeting minutes release, which indicated potential changes in monetary policy. The price movement took Bitcoin from $94,134 to $96,180 within an hour after the Federal Reserve released its meeting minutes. The documents revealed that policymakers discussed the possibility of slowing or pausing their balance-sheet reduction program, citing concerns about the debt ceiling.
Federal Reserve officials maintained their benchmark policy rate between 4.25% and 4.5% during the January meeting. The minutes showed that many participants supported keeping the policy rate at a restrictive level if economic conditions remained strong and inflation stayed elevated. U.S. retail investors demonstrated reduced buying activity after the market opened, according to the Coinbase Premium Index (CPI). This metric, which tracks U.S. retail investor activity on Coinbase compared to other exchanges, dropped below zero, indicating increased selling pressure.
The institutional investment landscape showed similar patterns. February began with positive momentum as spot Bitcoin ETFs recorded an inflow of $70.60 million. However, the trend reversed on February 18th, when these investment vehicles experienced a substantial outflow of $129.10 million. This selling pressure from institutional investors continued a pattern observed from February 10th to 13th, as various institutions reduced their Bitcoin holdings. The consistent outflows suggest a cautious approach from traditional financial players.
Despite the selling pressure from institutional sources, other market segments showed strong buying activity. Data from CryptoQuant revealed that addresses associated with over-the-counter (OTC) trades for long-term holding accumulated more than 28,000 Bitcoin, valued at approximately $2.6 billion. The spot market data supported this accumulation trend. Over the past week, buying exceeded selling by $314.70 million, indicating sustained demand from certain market participants. This pattern of Bitcoin accumulation has remained consistent since January 2025.
Technical analysis of the market structure revealed a notable liquidation level at $92,930.28. This price point currently holds $136.1 million worth of Bitcoin buy orders, potentially acting as a strong support level. Historical patterns suggest that such liquidation levels often attract price movement. The Treasury 
