Bitcoin surges to $43k as ETF inflows outpace sell pressure

cyptouser3 weeks agoCryptocurrencies News106

Bitcoin (BTC) has made a striking recovery, climbing above the $43,000 mark on Jan. 29, as market dynamics hint at a resurgence in investor confidence.

The leading cryptocurrency experienced this surge amidst a landscape where exchange-traded fund (ETF) inflows show signs of strength, particularly as they begin to outweigh outflows from Grayscale Bitcoin Trust (GBTC).

Outflows declining

Early trading data from Bloomberg revealed that iShares Bitcoin Trust (IBIT) had surpassed GBTC in trading volume, potentially marking the first time one of the “Newborn Nine” – a term coined for the new Bitcoin ETFs – traded more than GBTC, with $155 million to $113 million respectively.

Despite experiencing outflows, GBTC’s redemption rate is showing signs of deceleration, suggesting a potential stabilization in inflows for Bitcoin spot ETFs. Greco noted a decline in the daily average outflow rate from GBTC, indicating a diminishing pace of investor withdrawal.

The robust trading volumes of Bitcoin ETFs underscore the sustained interest, with cumulative volumes since their inception nearing $25 billion. In contrast, volumes on centralized exchanges for digital assets have decreased.

Meanwhile, the interest in BTC Spot ETFs remains high, indicating an ongoing shift in investor preference from traditional cryptocurrency trading platforms to regulated financial products.

Bloomberg Intelligence analyst James Seyffart’s update on the Bitcoin ETF space further supports this view, with outflows from GBTC topping $5 billion. In comparison, the gross flows for other ETFs stand at $5.8 billion, resulting in a net inflow of $759 million.

Fed rate announcement

The increase in ETF inflows is concurrent with broader market anticipation regarding the Federal Reserve’s upcoming decision on interest rates. Investors are speculating how the central bank’s actions may influence liquidity and investment strategies across various asset classes, including digital currencies.

Markets are paying close attention to the Fed’s tone and future guidance, as any indication of a dovish pivot or a continuation of the hawkish stance on inflation could have immediate ramifications for risk assets, including cryptocurrencies. A softer approach may increase risk appetite, potentially funneling more capital into Bitcoin and its related ETFs.

The market’s anticipation of the Fed’s decision is evident in the recent trading patterns, where Bitcoin ETFs have seen substantial inflows despite GBTC experiencing significant outflows. The pattern of slowing redemptions from GBTC hints at a maturing investor outlook that sees the potential for stabilizing Bitcoin markets, even as the Fed’s decision looms.

BTC Price & Market Data

At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is up 2.68% over the past 24 hours. BTC has a market capitalization of $843.81 billion with a 24-hour trading volume of $20.09 billion. Learn more about BTC ›


29 Jan at 9:59 pm UTC



BTCUSD Chart by TradingView

Market summary

At the time of press, the global cryptocurrency market is valued at at $1.66 trillion with a 24-hour volume of $49.02 billion. Bitcoin dominance is currently at 51.00%. Learn more ›


Assad Jafri

Reporter at CyptoRanking

AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

@Saajthebard LinkedIn Email Assad Editor

News Desk

Editor at CyptoRanking

CyptoRanking is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.

@cryptoslate LinkedIn Email Editor Latest Report

The invisible engine: How OTC trading powers Bitcoin ETFs

Exploring the intricacies of OTC trading, providing a comprehensive understanding of this often overlooked but vital component of the market.

Andjela Radmilac · 2 days ago
The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Thousands of Coinbase users sign up as potential amicus curiae in legal fight with SEC

Around 5,000 Coinbase users have signed up as potential amicus curiae in the legal battle against th...

California senator proposes new legislation to ‘democratize’ AI resources

Senator Steve Padilla (D-San Diego) proposed new legislation in the form of Senate Bills 892 and 893...

Phoenix Group IPO raises $370M, signaling investor confidence in Middle Eastern crypto economy

Abu Dhabi’s Phoenix Group, a Bitcoin (BTC) mining service provider, has completed an initial p...

Binance's guilty plea casts shadow over potential Hong Kong expansion

Binance’s recent guilty plea in the United States could impact its plans to expand into Hong K...

Judge in Coinbase case says SEC's securities definition may be too broad

A court hearing between Coinbase and the U.S. Securities and Exchange Commission (SEC) took place on...

Republican lawmakers call for the removal of SEC’s Gary Gensler over bias and damage to the digital asset industry

In a bold move, U.S. Congressman Warren Davidson, with support from House Majority Whip Tom Emmer, h...