Bitcoin rises above $50,000 amid slowing sales of Grayscale’s GBTC fund

Bitcoin BTC

+3.87%
Prices topped $50,000 on Monday amid continuing signs that the sell-off in Grayscale Investments’ cash funds may be nearing its end.

“Bitcoin is now poised to hit new all-time highs this year,” Bitfinex analysts said in the report. “This upward trend coincides with a period of declining GBTC outflows and an overall increase in inflows into digital asset funds.” revealed.

“Excluding Grayscale’s GBTC, the newly launched Bitcoin ETFs now hold over 192,000 BTC, surpassing MicroStrategy’s 190,000 BTC and exceeding $1 billion in inflows in less than a month.” added.

Bitcoin prices rose to their highest level since December 2021 on Monday. It was trading at $50,260 at 12:38 PM ET, up 4.1% over the last 24 hours.

an optimistic outlook

Bitfinex analysts said the long-term Bitcoin holdings dynamics suggest a bullish outlook for the market.

“These inflows, combined with the impending Bitcoin halving in 2024 and continued illiquid supply levels, with over 70% of Bitcoin in the hands of long-term holders, paint a very optimistic picture for BTC price action. “They said.

They noted that the “news sell” price drop expected by some after several spot Bitcoin ETFs were approved in January was less severe than expected.

“BTC has not reached its expected lows. Realized price indicators across a diverse group of investors indicate that we are still in the early stages of a bull market. These indicators suggest that the price will trend upward on a long-term trajectory this year. ,” Bitfinex analysts added.

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