Bitcoin price rebounded above $41,000 this morning, with outflows from Grayscale’s GBTC convertible spot ETF slowing for the third day in a row.
GBTC recorded outflows of $394.1 million on January 25, up from $429.3 million on Wednesday and $515.3 million on Tuesday, according to data from BitMEX Research. Although GBTC outflows remain very high, yesterday’s figures were the second lowest since January 11, the first trading day for the spot Bitcoin ETF.
9 New Spot Bitcoin ETFs — BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), and Franklin Templeton (EZBC) ) and WisdomTree (BTCW) — no daily outflows have been witnessed yet.
IBIT recorded the largest inflow yesterday at $170.7 million. FBTC generated $101 million worth of inflows, while BITB came in third with $20 million. However, gross inflows of $9314.30 on Thursday were not enough to overcome GBTC outflows, resulting in net outflows of nearly $80 million.
Overall, spot Bitcoin ETFs have seen net inflows of $744.6 million since launch, with the nine newly created ETFs seeing total inflows of $5.53 billion and GBTC seeing total outflows of $4.79 billion. was recorded.
Bitcoin BTC
+3.25%
The stock is currently trading at $41,328, up 3% in the last 24 hours, according to The Block’s. Pricing page. However, the largest cryptocurrency by market capitalization fell more than 20% from a previous high of about $49,000 on the day the spot Bitcoin ETF was launched to $38,600 on January 23.
BTC/USD price chart. Image: Block/TradingView.
Liquidations surge after Bitcoin rises
As Bitcoin rose above $41,000, more than $110 million was liquidated on centralized exchanges in the last 24 hours.
According to Coinglass data, the majority of cryptocurrency liquidations involved short positions, resulting in losses of more than $66 million, while long positions contributed about $44 million to total liquidations.
In derivatives markets, liquidation occurs when a trader’s position is forced to close due to insufficient funds to cover losses. This situation occurs when market movements are against the trader’s position and the initial margin or collateral is depleted.
Volatility, which has shaken many leveraged positions, has risen compared to the beginning of the month. The Block’s data dashboard currently sees year-to-date Bitcoin volatility at 53.95%, up from a low of around 42% in early January.
Are there more downsides to come?
GBTC investors could face further pressure on Bitcoin prices if they continue to take profits, analysts at JPMorgan said last week.
GBTC investors, who had purchased the fund’s shares at a significant discount to their net asset value over the past year for a potential ETF conversion, are “exiting the Bitcoin space entirely rather than moving into the Bitcoin space after the ETF conversion,” he said. Benefited from cheaper spot Bitcoin ETFs,” analysts noted.
Chris Burniske, a partner at Placeholder VC who previously led cryptocurrencies at Ark Invest, seems to agree, speculating that Bitcoin will “at least” fall to $30,000 to $36,000 before hitting a local bottom.
Burniske posted to
Burniske said he believes the long-term trend remains robust but warned of volatility. “Do not ignore the fact that we have seen many first parabolas of cycles and that they are now breaking. The macro view looks precarious on many levels,” he added. “We’re close to a new product innovation, but it’s not quite there yet… we still feel isolated.”
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