bitcoin/” rel=”nofollow”>bitcoin has once again exceeded $43,000 a few days after making a rapid recovery from less than $40,000 to $42,000. This trend change is believed to be due to a series of recent events that have painted a bullish narrative for the bitcoin-fall-30-top-2-altcoins/” rel=”nofollow”>flagship crypto token.
Grayscale effect is disappearing
Bloomberg analyst James Seyffart recently highlighted how BlackRock bitcoin Spot ETF, IBIT, went head-to-head with Grayscale's GBTC on the 12th trading day in terms of trading volume. This turned out to be the closest IBIT or any bitcoin Spot ETF had gotten to GBTC, which holds the “liquidity crown.”
This represents a positive development for the price of bitcoin as IBIT volume, plus inflows, is able to suppress GBTC volume, which has mainly been outflows. He bitcoin-etf-outflows-end-experts/” rel=”nofollow”>departures recorded by GBTC After its Spot bitcoin ETF conversion, it partly contributed to the flagship crypto token falling below $40,000.
However, GBTC investors appear to be cooling off from the profit-taking that had overwhelmed the fund, as it has now seen a reduction in outflows for the fifth day in a row. BitMEX Research revealed in a post by X (formerly Twitter) that GBTC had experienced an outflow of $192 million on January 29.
That figure also represented GBTC's lowest daily outflow yet and the first time it saw a daily outflow below $200 million. This recent trend of reducing outflows has evidently provided some form of relief to the bitcoin market, as The sales pressure of grayscale It has decreased.
Meanwhile, bitcoin bulls also helped ensure that bitcoin did not stay down for long. Data from IntoTheBlock showed that bitcoin whales have increased their btc holdings by 76,000 btc since the beginning of this year. That suggests there was reasonable demand for the crypto token even as Grayscale continued to dump its btc holdings.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Why-is-Bitcoin-price-above-43000-today" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc price holding strong above $43,000 | Source: BTCUSD on Tradingview.com
Other factors behind bitcoin's recovery
NewsBTC recently reported how macroeconomic factors such as recent bitcoin–btc-leading-indicator-cpi-inflation/” rel=”nofollow”>inflation data and the fact that US debt was at an all-time high had contributed to bitcoin's recovery to $42,000. These factors are still influencing bitcoin's current momentum, which has seen it bitcoin-rebounds-back-above-43000-heres-why/” rel=”nofollow”>rise above $43,000.
Additionally, the Federal Open Market Committee (FOMC) meeting is scheduled for January 30-31, and the CME FedWatch tool predict that there is a 97.9% chance that interest rates will remain the same. Rates remain stable, rather bitcoin-recovers-on-fed-hike/” rel=”nofollow”>what a walkThey are good for the market.
This also provides a plausible explanation for the recent rise in bitcoin price, as investors are already positioning themselves in anticipation of the likely outcome of the Federal Reserve meeting. Another event that these investors will position themselves for is the bitcoin-bull-market-glassnode/” rel=”nofollow”>bitcoin Halving.
Santiment market intelligence platform recently revealed that bitcoin supply on exchanges has continued to shrink, and btc holders move their tokens into cold storage. This move could well anticipate the likely gains bitcoin is expected to see once the halving event takes place.
Chart by Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
