Bitcoin Price Dips Below $40,000 Support Level
The current price of Bitcoin is around $38,936, showing a consistent trading range between $38,000 and $40,000. However, the value of BTC has been on a downward trend, with a decline of over 10% in the past week and a 5% drop in the last 24 hours. This has caused Bitcoin to fall below the crucial support level of $40,000, indicating further downward movements.
Despite the dip in value, Bitcoin’s trading volume has surged by over 65% in the past 24 hours, reaching $31 billion. This suggests an increasing interest and active participation in Bitcoin trading among investors.
Bitcoin Spot ETFs Witness High Trading Volume
Exchange-traded funds (ETFs) focused on Bitcoin have experienced remarkable trading volumes, with over $2 billion in daily volume. The Grayscale Bitcoin Trust (GBTC) contributes more than half of this volume.
Volume on the #Bitcoin ETFs remains very strong. Over $2 billion again today. $GBTC still making up a bit more than half.
Total volume in the first 7 trading days is just shy of $19 billion. pic.twitter.com/AGaJMsnC9S
— James Seyffart (@JSeyff) January 22, 2024
In the first seven trading days, the cumulative volume reached nearly $19 billion, indicating strong investor interest in Bitcoin through ETFs. BlackRock’s iShares Bitcoin Trust recently acquired 4,808 Bitcoins from Coinbase Prime, adding to its total holdings of 33,431 units worth around $1.33 billion.
BTC ETFs Show Resilience Amid Market Fluctuations
Bitcoin’s price initially surged from $24,000 to a peak of $48,500 due to the approval of several spot Bitcoin ETFs. However, the price took an unexpected turn and experienced a sharp decline instead of continuing to rise. The next major support level for Bitcoin is around $38,000. Breaking below this threshold could lead to further declines towards $35,000 or even $30,000.
Despite the price dip, ETF trading volumes remain high. The indicators suggest a neutral stance with increased selling pressure and a bearish outlook.
Hot Take: Bitcoin vs. Gold Performance in 2023
In 2023, Bitcoin saw a growth of 154.4%, while gold only had a 15% increase in price. With spot ETFs now available for Bitcoin, investing in the cryptocurrency could prove more profitable in 2024 compared to gold. However, it’s important to note that Bitcoin and the crypto market are highly volatile and may not be suitable for all investors.
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