Bitcoin recovers above $40k amidst GBTC outflows, other ETF inflows

Bitcoin rebounds above $40,000 as outflows from the Grayscale Bitcoin Trust (GBTC) coincide with inflows into other spot Bitcoin ETFs. On January 24, 2024, Bitcoin saw a 1% increase, reaching a price of $40,143 and a market cap of $786 billion. Earlier, Bitcoin briefly dipped below $40,000, hitting a low of $39,563. The overall cryptocurrency market also experienced a 1.8% gain, with notable increases in Solana (SOL), Dogecoin (DOGE), Avalanche (AVAX), and XRP. However, Ethereum (ETH), BNB, and Cardano (ADA) saw minor declines or remained unchanged. During the 24-hour period, there were $105.6 million in trader liquidations, with Bitcoin and Ethereum accounting for a significant portion. GBTC outflows, totaling over $754 million, have impacted Bitcoin prices, counteracting separate inflows into other spot Bitcoin ETFs. This trend has resulted in a decrease in overall spot Bitcoin inflows to $982.9 million. The entrance of Bitcoin into the market is expected to increase supply and potentially influence prices. Additionally, fading hype around spot Bitcoin ETFs and other market developments may also affect investor sentiment and contribute to price fluctuations. As of now, Bitcoin retains its top position in terms of market cap, with a 24-hour trading volume of $22.06 billion.