Bitcoin (BTC) price had gone into decline following the long-awaited launch of the spot Bitcoin ETF. After about two weeks of decline, upward movements were seen for the first time. Nevertheless, some analysts believe that the correction in Bitcoin’s price has already been completed and the bottom has been reached. Bitcoin’s price was at the same level as a week ago, possibly after the S&P 500 Index also recently reached its all-time high.
Is Bitcoin Over?
The frequently mentioned analyst CrediBULL Crypto had shared that after Bitcoin’s price retreated to the $38,000 level last week, he expected the price to return to the $40,000 level.
However, he also noted that there was a risk of another drop to around $37,000, if not below the $36,000 level. In this context, it is still being debated whether the recent decline in BTC price, which started with the approval of the spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), will continue.
The events of the last two days continue to attract attention. The jump in Bitcoin price, considering the current BTC price, could bring significant selling pressure. Nevertheless, a price movement below $40,000 does not seem very likely.
According to the analyst interpreting the accuracy of such a scenario, the bottom level for Bitcoin may have already come and gone.
Bitcoin ETF Impact
At the same time, according to CrediBull, despite the outflows from the Grayscale Bitcoin ETF, the performance of Bitcoin ETFs appears positive due to more entries into ETFs.
On January 26, 2024, the outflows from Grayscale Bitcoin spot ETF (GBTC) were clearly valued at $671 million. This situation also stood out as the record for the largest single-day net outflow in Bitcoin ETFs.
The cumulative net outflows from ETFs on the Grayscale side reached a value of $5.46 billion, but more alarming is that the company continues to hold assets worth $19.99 billion.
Speaking of Bitcoin, at the time of writing, it was trading at the $41,700 level, with a little over a 2% increase. On the other hand, the daily trading volume was also over $21.5 billion, with a 3% increase.
