Bitcoin Surges Past $42,000: Market Shows Positive Signs Amid Slowdown in GBTC Outflows
Summary:
Bitcoin's value has surpassed the $42,000 mark for the first time in nearly a week amid a slowing down of outflows for Grayscale’s GBTC spot ETF. This upward trend in the market has created a hopeful sentiment among cryptocurrency traders and investors, who are looking forward to long-term gains due to the continued trading of spot Bitcoin ETFs.
In a refreshing turn of events, Bitcoin's value has surpassed the $42,000 mark for the first time in nearly a week as the crypto market mitigates the impact of the previous sell-off aligned with spot Bitcoin ETF. Information from Cointelegraph Markets Pro and TradingView highlights that Bitcoin saw a swift rise from $39,545 on January 26 to trade at $41,973, a gain of 5%.
A slowing down of outflows for Grayscale’s GBTC spot ETF has accompanied Bitcoin's value surge. BitMEX Research data indicates that the GBTC observed outflows of $394.1 million on January 25, falling from the previous two days of $429.3 million and $515.3 million respectively. Although GBTC outflows are still high, the 25th of January recorded the second-lowest number since spot Bitcoin ETF trading began on January 11.
James Sayfart, a senior Bloomberg ETF analyst, shared a graph showing the narrowing of premiums and discounts for Bitcoin ETFs over the last ten days. Eric Blachunas, his colleague, reacted by describing it as a "beautiful sight".
Yakuza, an independent market analyst, further noted that Bitcoin appears to have laid a successful bear trap, with Bitcoin's price not plummeting to $32,000 as many shorts had anticipated. Furthermore, data made available by Coinglass reveals short-position liquidations for Bitcoin exceeding $34.3 million in a day, with the figure anticipated to rise as the day progresses. Total short liquidations across cryptos surpassed $77 million.
This upward trend in the market carries a hopeful sentiment among cryptocurrency traders and investors, who are looking forward to long-term gains for Bitcoin's value due to the continued trading of spot Bitcoin ETF.
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Published At
1/26/2024 9:35:00 PM
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