FOMC

Bitcoin ETF

Million

Grayscale Bitcoin Trust

James

Following a period of selling pressure last week, the <a href="https://coingape.com/bitcoin-price-rebounds-above-43000-whats-driving-the-rally/?utm_source=24hrsupdatebitcoin" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> has displayed renewed strength, surging to levels of $43,500 earlier today. This resurgence in Bitcoin’s value coincides with positive sentiment surrounding the upcoming FOMC meeting. Notably, the outflows from GBTC have decelerated, while inflows into Bitcoin ETFs continue to hold steady.
<h3 id="the-gbtc-outflows-drop-under-200-million-a-day">The GBTC OutFlows Drop Under $200 Million A Day</h3>
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.
<blockquote class="twitter-tweet">
 Bitcoin ETF Flow – Day 12
 GBTC flow data out
 $192m outflow
 — BitMEX Research (@BitMEXResearch) <a href="https://twitter.com/BitMEXResearch/status/1752113539429368293?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 29, 2024</a>
</blockquote>

As of January 29, 2024, Grayscale <a rel="noopener noreferrer nofollow" href="https://etfs.grayscale.com/gbtc" target="_blank">holds</a> 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 $110 million today.
<blockquote class="twitter-tweet">
 And <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Grayscale</a>'s <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$GBTC</a> maintains its liquidity crown — trading $570 million and ~$110 million more than second place <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$IBIT</a> today <a href="https://t.co/WIAWKwDnqY" rel="noopener noreferrer nofollow">https://t.co/WIAWKwDnqY</a> <a href="https://t.co/ma0CE5szLa" rel="noopener noreferrer nofollow">pic.twitter.com/ma0CE5szLa</a>
 — James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1752081949470986329?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 29, 2024</a>
</blockquote>

This slowing down of outflows also suggests the reducing selling pressure on Bitcoin. The most recent <a href="https://coingape.com/bitcoin-etf-risks-investor-guide-when-gbtc-outflows-spook-the-market/" target="_blank" rel="noopener noreferrer nofollow">outflows from GBTC</a> 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.
<h3 id="where-s-btc-price-heading">Where’s BTC Price Heading?</h3>
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 <a rel="noopener noreferrer nofollow" href="https://twitter.com/CryptoMichNL/status/1751991089425240509" target="_blank">speculates</a> 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 post <a href="https://coingape.com/gbtc-outflows-slow-down-under-200-million-a-day-btc-price-shoots/" rel="noopener noreferrer nofollow">GBTC Outflows Have Dropped Under $200 Million A Day, BTC Price Shoots</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

GBTC Outflows Have Dropped Under $200 Million A Day, BTC Price Shoots

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