Bitcoin recovers above $40,000 amid GBTC outflows and other ETF inflows

Bitcoin price recovered above the $40,100 milestone on January 24, 2024 amid continued inflows and outflows involving various spot Bitcoin ETFs.

Bitcoin (BTC) rose nearly 1% in the 24-hour period ending at 11:55 p.m. UTC. On Wednesday, the price was reported at $40,143, with a market cap of $786 billion. During the first half of the period, which lasted about five hours, Bitcoin was worth less than $40,000, and by 9 p.m. it had fallen to $39,563.

The overall cryptocurrency market rose 1.8% in 24 hours. Other major assets are also rising. Solana (SOL) is up 5.8%, Dogecoin (DOGE) is up 1.2%, Avalanche (AVAX) is up 2.2%, and XRP is up 0.1%. Meanwhile, Ethereum (ETH) fell 0.2%, BNB fell 1.7%, and Cardano (ADA) remained unchanged.

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

GBTC outflows could affect prices

CryptoSlate Insights found that the GBTC outflow resulted in 19,236 BTC leaving the fund on January 23rd. This equates to more than $754 million.

GBTC outflows have offset inflows to various other spot Bitcoin ETFs, and this trend is best seen in long-term data.James Seifert, Bloomberg ETF Analyst reported that As of January 23, GBTC has recorded cumulative outflows of $3.96 billion in eight days, while other funds have recorded inflows of $4.95 billion over the same period. This reduces overall spot Bitcoin inflows to just $982.9 million.

As Bitcoin enters and remains in the market, it is expected that the supply available to investors will increase, thereby lowering the price.

Investor sentiment due to the waning of the hype surrounding the Spot Bitcoin ETF could also impact the price, along with other developments.