Bitcoin remained steady on Tuesday, hovering just above $29,000, while data suggests that long-term holders are moving their coins to cold storage. The cryptocurrency has been trading within a narrow range between $29,000 and $31,500 for over a month. Bitfinex reported that exchange balances have declined significantly, indicating renewed interest in Bitcoin from traditional fund investors.
The decline in exchange reserves is positive for Bitcoin's price as more investors indicate a desire to accumulate rather than trade. However, Bitcoin may face downside pressure if the Federal Open Market Committee's post-rate decision statement is hawkish.
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