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- Grayscale’s Bitcoin Trust (GBTC) experiences a significant slowdown in outflows, suggesting reduced selling pressure on Bitcoin.
- Bitcoin demonstrates resilience, maintaining its position around the $40,000 mark, with potential signs of a bullish return.
According to an update from BitMEX Research, Grayscale’s Bitcoin Trust (GBTC) experienced outflows of $429 million on January 24. This figure marks the smallest daily outflow since the launch of Grayscale’s spot Bitcoin ETF on January 11, representing a 33% reduction compared to the beginning of the week on January 22.
A tweet from BitMEX Research provided a provisional chart showing the activity. To date, only GBTC, Bitwise, Ark, and Franklin have reported for day 9, while updates from other entities are awaited.
Bitcoin Spot ETF Flow – After 9 days
here is the provisional chart. Only GBTC, Bitwise, Ark and Franklin in for day 9 so far
Day 9:
GBTC -$429.3m
Ark +$24.9m
Bitwise +$20m
Franklin +$1.2mWaiting on others. Looks like another net outflow day. https://t.co/fzj2LI5CtH pic.twitter.com/E7s3YjyatD
— BitMEX Research (@BitMEXResearch) January 25, 2024
Furthermore, data on Wednesday morning indicated that GBTC held approximately 537,000 bitcoins, a decrease of about 100,000 BTC since January 11. According to Arkham Intelligence, Grayscale has moved around 113,000 Bitcoin from its wallets since January 11, primarily to Coinbase Prime, presumably in preparation for sales. The declining trading volume of GBTC may indicate a waning sell-off. The following video delves into the reasons behind the current decline in Bitcoin’s price.
However, it’s important to note that due to the input-output structure of Bitcoin’s blockchain, transaction outputs often get distributed among multiple addresses. This can lead to potential misinterpretations of GBTC’s transaction data, as pointed out by Arkham Intelligence in their tweet:
Due to the input-output structure of its blockchain, Bitcoin transaction outputs are often split amongst multiple addresses.
GBTC custody wallets frequently send to multiple addresses, most often a Coinbase Prime deposit and a fresh GBTC custody address. This means that some of… pic.twitter.com/Oml9IhLDMp
— Arkham (@ArkhamIntel) January 24, 2024
Despite these outflows, Bitcoin has shown remarkable resilience, consistently hovering around the crucial $40,000 landmark. The reduced selling pressure from GBTC for the second consecutive day is a noteworthy development. Adding to this observation, Eric Balchunas, ETF Analyst for Bloomberg, commented that the drop in GBTC volume might indicate a tapering of the selling pressure, akin to patterns observed in traditional stocks. Balchunas’ insights can be further explored in his tweet:
$GBTC volume down again today.. could be sign of some exhaustion in the selling (same thing happens in stocks, $SPY volume goes up w selling, down w peace). We'll see tonight tho. And I'm only reporting on shares out data sent by their admin to BBG. Only thing you can 100% trust. pic.twitter.com/m9uRs7tBr5
— Eric Balchunas (@EricBalchunas) January 24, 2024
So, will the bulls return and push Bitcoin’s price to $50,000? As of this writing, Bitcoin is trading at $40,067.90, showing a slight increase of 0.09% over the past day, following a 6.47% decline over the previous week. The current price chart is available below:
No coins selected
From my perspective, it could be concluded that Bitcoin’s current stability around $40,000 signals a resilient market, potentially setting the stage for a bullish climb to the $50,000 threshold.
