Greed

Bitcoin ETF

Bitcoin

Material

<p>Recently, Bitcoin, the flagship crypto, experienced a noteworthy setback as the bulls struggled to maintain the crucial $42,000 mark. This abrupt shift in momentum has left investors and enthusiasts questioning the underlying factors contributing to this decline.</p>
<p>Bitcoin’s price movements are influenced by a myriad of factors, including market sentiment, regulatory developments, macroeconomic trends, and technological advancements. Understanding the intricacies of why the bulls failed to sustain the $42,000 mark requires a comprehensive analysis of these elements. Here we go!</p>
<h2 class="wp-block-heading" id="bitcoin-in-trouble">Bitcoin in trouble</h2>
<p>At press time, the price of Bitcoin (BTC) is $41,488.52, with a 24-hour trading volume of $21,718,974,282.60. This reflects a -2.33% price drop in the last 24 hours and a -10.50% price drop in the last 7 days. The<a href="https://twitter.com/BitcoinFear/status/1747944459546108038" rel="noopener noreferrer nofollow" target="_blank"> Bitcoin Fear and Greed Index </a>is at 63.</p>
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   <p lang="en" dir="ltr">Bitcoin Fear and Greed Index is 63 – Greed<br>Current price: $42,400 <a href="https://t.co/cvANStK9S7" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/cvANStK9S7</a></p>— Bitcoin Fear and Greed Index (@BitcoinFear) <a href="https://twitter.com/BitcoinFear/status/1747944459546108038?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
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<p>The global crypto market cap is $1.72 trillion today, down 2.21% in the last 24 hours and 71.7% from a year ago. As of today, BTC’s market cap is $814 billion, reflecting a 47.39% crypto market dominance. Meanwhile, stablecoins’ market cap is $135 billion, accounting for 7.89% of the total crypto market cap.</p>
<p>BTC remains below $43,000 this week, with even institutional purchases having no impact on markets. BTC has disappointed traders after plunging 15% in two days last week following the launch of the first US spot exchange-traded funds (ETFs).</p>
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   <p lang="en" dir="ltr">Liquidity Dampens Volatility<br><br>That is precisely why <a href="https://twitter.com/hashtag/BITCOIN?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#BITCOIN</a> has been trading sideways with price pinned between $41.5k – $44k since Saturday.<br><br>By using Volume Percentile filtering in <a href="https://twitter.com/hashtag/FireCharts?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#FireCharts</a> 2.0 (beta) we can clearly see where <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#BTC</a> liquidity is in the order book and where it… <a href="https://t.co/QpJ5S2zg1e" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/QpJ5S2zg1e</a></p>— Material Indicators (@MI_Algos) <a href="https://twitter.com/MI_Algos/status/1747964187404316710?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
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<p>While there has been no more decline, bulls have also failed to move BTC/USD back to the top of its broader trading range, which has a ceiling of $48,000.</p>
<p>However, while examining which barriers stand in the way, trading resource Material Indicators identified a major issue: excessive liquidity around the spot price.</p>
<p>Material Indicators published a heatmap of BTC/USDT order book liquidity on Binance, the largest global exchange, indicating a cloud of bid support between $42,000 and a spot at roughly $42,500.</p>
<p>According to the heatmap, since Bitcoin went below $44,000, strong sale interest has surfaced at both that price and $45,000.</p>
<p>Material Indicators stated that there were no obvious contenders for shaking up the market in the short term.</p>
<h2 class="wp-block-heading" id="the-crypto-market-after-btc-etf-approvals">The crypto market after BTC ETF approvals</h2>
<p><a href="https://www.cryptopolitan.com/btc-etfs-pose-a-threat-to-coinbase-dominance/" rel="noopener noreferrer nofollow">Spot Bitcoin ETF</a> trading day 4 has been completed successfully, and the embryonic sector has seen significant flow, indicating a liquidity stratum among important issuers.</p>
<p>According to Eric Balchunas, Senior Bloomberg ETF analyst, net flows from Bitcoin ETFs have surpassed $1.2 billion, particularly since nine of the eleven ETF filers approved by the United States Securities and Exchange Commission (SEC) received nearly $914 million on January 18.</p>
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   <p lang="en" dir="ltr">LATEST: Day Four was a good one, the ROLLING NET FLOWS grew to +$1.2b after the Newborn Nine pulled in $914b on Wed, by far their best day yet, overwhelming the $450 out of <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$GBTC</a>. The 'Nine' have now taken in $3b and traded $5.4b in first four days (abnormally high <a href="https://twitter.com/hashtag/s?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#s</a>). <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$IBIT</a> is… <a href="https://t.co/mYBLggYlYK" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/mYBLggYlYK</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1747956852619366616?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
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<p>The profits achieved on this trading day were the most since the spot Bitcoin ETFs began trading last week.</p>
<p>The fourth trading day’s inflows for Bitcoin ETFs outpaced the $450 million outflow from Grayscale’s GBTC. In total, the “Newborn Nine” had traded $5.4 billion and received $3 billion during the last four trading days. BlackRock’s IBTC has already traded for over $1 billion. Fidelity’s FBTC is close behind in second place, with Bitwise BITB coming in third.</p>
<p>Unlike other ETF issuers that have witnessed big inflows, Grayscale has seen massive withdrawals due to its 1.5% charge. Many investors are dumping GBTC, endangering the fund’s years of dominance. In addition, the asset management firm has been changing its Bitcoin holdings, sparking market speculation.&nbsp;</p>
<p>Grayscale’s dismal inflow-to-outflow ratio was unexpected for an ETF issuer that outperformed on the first trading day of Bitcoin ETFs. On that day, Grayscale dominated the market with almost $4 billion in trading volume, leaving the other Bitcoin ETF issuers with a fraction of the market. With the most recent data, BlackRock has taken the lead.</p>

Bitcoin bulls fail to hold the $42K mark – But why?

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