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The fast-paced month of January is coming to an end, with BTC having risen to as much as $49,000. When compared to the same period last year, the gains achieved by the markets are impressive. Although we have felt the dominance of profit-taking in the last few weeks, we are seeing this slow down. So, what does the current situation indicate?
GBTC and Spot Bitcoin ETFs
Bitcoin price is above $42,400 as this article is being prepared, and investors are hopeful with the weekly close approaching. On the other hand, GBTC outflows have slowed down, and there are ongoing net entries into ETFs. This is one of the important details that weakens the pressure on the market.
Regarding how the next week will start in terms of ETF issuer reserves, WuBlockchain wrote:
“When Spot Bitcoin ETFs open on Monday, January 29, approximately 12,504 BTC ($525 million) is expected to move among ETF custody addresses. Among these, the Grayscale GBTC custody address will see an outflow of about 6,077 BTC; the remaining nine ETF custody addresses will see an inflow of about 6,427 BTC; the overall net inflow will be approximately 350 BTC ($14.8 million).”
Crypto Currencies Expectations
Experts at JP Morgan and Bloomberg now believe that the slowdown in GBTC sales will also relax the pressure on the market. The experts’ main motivation is that investors who have been determined to sell since the first trading day have now largely emptied their reserves.
Moreover, the fact that BlackRock‘s total assets have surpassed the $2 billion threshold is promising for significant investor entry. Experts expect ETFs to reach more investors in the coming period and take their place in the risk section of portfolios. ETF issuers, managing trillions of dollars in assets, have already started to seek out customers for their new products.
At this stage, it would not be surprising for cryptocurrencies to perform even better before the halving in order to attract more new investors. Every bull season starts with a new influx of investors, and ETFs have facilitated accredited investors to join this surge.
If Bitcoin can close the week above the support zone of $41,300, the target of $48,000 could come back into play. This could mean the return of gains exceeding 50% for altcoins.
