Bitcoin Rebounds Above $40,000 Amid GBTC Outflows and Other ETF Inflows

Bitcoin prices recovered above the $40,100 mark on January 24, 2024, amid continued inflows and outflows from several spot Bitcoin ETFs.

Bitcoin (BTC) rose almost 1% during the 24 hours ending at 23:55 UTC. on Wednesday, with a price of $40,143 and a market cap of $786 billion. During an earlier period, which lasted about five hours, Bitcoin was worth less than $40,000, briefly falling to $39,563 at 9 p.m.

The crypto market as a whole is up 1.8% in 24 hours. Other leading assets have also posted gains: Solana (SOL) is up 5.8%, Dogecoin (DOGE) is up 1.2%, Avalanche (AVAX) is up 2.2%, and XRP is up 0.1 % increased. Meanwhile, Ethereum (ETH) is down 0.2%, BNB is down 1.7%, and Cardano (ADA) has seen no change.

The market saw 37,063 trader liquidations worth $105.6 million in the 24-hour period ending at 11:40 p.m., according to Mint glass. Of these liquidations, $39.11 million involved Bitcoin (BTC) and $23.75 million involved Ethereum (ETH).

GBTC outflows could impact prices

CryptoSlate Insights found that the GBTC outflow on January 23 removed 19,236 BTC from the fund, an amount valued at more than $754 million.

GBTC’s outflows offset inflows into several other spot Bitcoin ETFs, a trend best seen in long-term data. Bloomberg ETF analyst James Seyffart reported that As of January 23, GBTC has experienced cumulative outflows of $3.96 billion in eight days, while other funds have seen inflows of $4.95 billion over the same period. This reduces total spot Bitcoin inflows to just $982.9 million.

Every Bitcoin that enters and remains on the market is expected to increase supply for investors, causing prices to fall.

Investor sentiment resulting from the waning hype surrounding spot Bitcoin ETFs could also influence prices, among other developments.