After seeing some selling pressure last week, the Bitcoin price is showing strength once again reaching all the way to $43,500 levels earlier today. The Bitcoin price revival comes amid optimism around the upcoming FOMC meeting. Interestingly, the GBTC outflows have also slowed down while Bitcoin ETF inflows remain intact.
The GBTC OutFlows Drop Under $200 Million A Day
On Monday, January 29, the Grayscale Bitcoin Trust (GBTC) recorded its 12th consecutive day of outflows. The data shows clear signs of outflows slowing down to $191.7 million.
Bitcoin ETF Flow – Day 12
GBTC flow data out
$192m outflow
— BitMEX Research (@BitMEXResearch) January 29, 2024
As of January 29, 2024, Grayscale holds 496,573.8166 Bitcoins, with GBTC’s Assets Under Management (AUM) standing at around $21.431 billion. Following the approval of the spot ETF, Grayscale users sold a total of 120,500 BTC, equivalent to approximately $5.508 billion.
Bloomberg Intelligence analyst James Seyffart noted that Grayscale’s GBTC continues to lead in liquidity, with trading reaching $570 million, surpassing the second-place $IBIT by approximately $110 million today.
And @Grayscale‘s $GBTC maintains its liquidity crown — trading $570 million and ~$110 million more than second place $IBIT today https://t.co/WIAWKwDnqY pic.twitter.com/ma0CE5szLa
— James Seyffart (@JSeyff) January 29, 2024
This slowing down of outflows also suggests the reducing selling pressure on Bitcoin. The most recent outflows from GBTC indicate a nearly 25% decline from $255 million on January 26, and a significant 70% drop from the fund’s highest daily outflows of $641 million on January 22.
On the other hand, Fidelity’s spot Bitcoin (BTC) ETF, FBTC, recorded a noteworthy achievement with $208 million in daily inflows on Jan. 29, surpassing outflows from Grayscale Bitcoin Trust (GBTC) for the first time since their launch day. The data, from Farside Investors and BitMEX Research, indicates a shift in investor sentiment.
Where’s BTC Price Heading?
Cryptocurrency analyst Michael van de Poppe suggests that Bitcoin is consolidating around $43K after a correction to $38.5K. He anticipates the possibility of another run to $48-50K before the halving, but he emphasizes that the outperformance is likely to occur with altcoins. Van de Poppe underscores the bullish market conditions and highlights the significant impact of ETF approval.
With Bitcoin above $43K, he notes that ecosystems are poised to outperform again. Projects like $SOL, $INJ, and Layer 2 solutions are showing significant rebounds. Van de Poppe speculates that the correction may be over, and the markets are gearing up for another push.
Looking at the broader picture, he predicts the total market capitalization for the cryptocurrency market to continue towards a $2 trillion market capitalization in the next 2-3 months, noting that the recent dip was quickly bought up.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
