Bitcoin Over $43,000 in just a few days after a quick recovery From less than $40,000 to $42,000. This trend reversal is believed to be due to a number of recent developments that paint a bullish story for the world. Flagship crypto token.
Grayscale effects are disappearing
Bloomberg analyst James Seifert recently emphasized that: BlackRock Spot Bitcoin ETF, IBITwas tied with Grayscale’s GBTC in terms of trading volume on its 12th day of trading. This was the closest IBIT or Spot Bitcoin ETF came to his GBTC holding the “liquidity crown.”
This is a positive development for the Bitcoin price, as the amount of IBIT, or inflows, is higher and the amount of GBTC, which was mainly outflows, can be suppressed.of Leaks recorded by GBTC The drop in price of the flagship crypto token below $40,000 after the Spot Bitcoin ETF conversion also contributed in part.
However, GBTC investors now appear to be cooling off the profit-taking that has been overwhelming the fund, as outflows have declined for five consecutive days. BitMEX investigation revealed A post on X (formerly Twitter) states that GBTC confirmed an outflow of $192 million on January 29th.
This figure was the lowest daily GBTC outflow ever, and the first time that daily outflows fell below $200 million. This recent trend of declining outflows is clearly bringing some relief to the Bitcoin market. grayscale sales pressure It has calmed down.
Meanwhile, Bitcoin bulls also helped keep Bitcoin from falling for too long. data IntoTheBlock research found that Bitcoin whales have increased their BTC holdings by 76,000 BTC since the beginning of this year. This suggests that there was reasonable demand for crypto tokens even as Grayscale continued to offload its BTC holdings.
BTC price holding strong above $43,000 | Source: BTCUSD on Tradingview.com
Other factors behind Bitcoin recovery
Recent news BTC report How macroeconomic factors favor the latest inflation data And the US debt reached an all-time high, contributing to Bitcoin’s recovery to $42,000. These factors are still at play in Bitcoin’s current momentum. Over $43,000.
Additionally, the Federal Open Market Committee (FOMC) is scheduled for January 30th and 31st, and the CME FedWatch tool is Predict There is a 97.9% chance that the interest rate will remain the same.Rather, interest rates are stable. than hikingwhich is good for the market.
This also provides a plausible explanation for the recent surge in Bitcoin prices, as investors are already positioning themselves in anticipation of the likely outcome of the Fed meeting. Another event that these investors are preparing for in the future is Bitcoin halving.
Market intelligence platform Santiment It was recently revealed As the supply of Bitcoin on exchanges continues to dwindle, BTC holders are moving their tokens to cold storage. This move may be in anticipation of Bitcoin expected to rise after the halving event occurs.
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