BTC Price Falls Below $41,000 for First Time Since December
The price of Bitcoin (BTC) has dropped below $41,000 for the first time since December. According to The Block data, BTC fell 3.9% over the past 24 hours, reaching $40,959 at 4:31 p.m. ET.
Downward Pressure Expected on Bitcoin’s Price
Analysts from JPMorgan, led by Nikolaos Panigirtzoglou, have warned that Bitcoin’s price could face further downward pressure in the coming weeks. This is due to investors in Grayscale’s spot exchange-traded fund (ETF) potentially taking profits.
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Outflows from GBTC Reach $1.6 Billion
Grayscale’s flagship GBTC fund has seen significant outflows. The Block’s Data Dashboard reported that on January 17 alone, there were $451 million in outflows. Cumulative outflows before Thursday amounted to at least $1.6 billion.
Grayscale Volume and Bitcoin Liquidations
The cumulative trading volume of all spot bitcoin ETFs reached $13.7 billion after five days of trading. On Thursday, $1.9 billion worth of funds changed hands, with Grayscale’s fund accounting for about 50% of the volume.
Meanwhile, Coinglass reported that bitcoin long liquidations totaled $28 million in the past hour, while short liquidations amounted to $4 million.
Bitcoin’s Recent Performance
Over the past week, Bitcoin’s price has fallen by 10.8%, and it is down 2.4% over the past month.
Hot Take: Bitcoin Faces Downward Pressure as Spot ETFs Trade
The price of Bitcoin continues to decline, dropping below $41,000 for the first time since December. Analysts predict that Bitcoin may face further downward pressure due to investors potentially taking profits from Grayscale’s spot ETF. Outflows from Grayscale’s flagship GBTC fund have already reached $1.6 billion. Despite the volatility, spot bitcoin ETFs have seen significant trading volume, with Grayscale’s fund accounting for about 50% of the total. Bitcoin’s recent performance has been negative, with a 10.8% decline over the past week and a 2.4% decline over the past month.
