The anticipation of a spot Bitcoin ETF approval has caused significant stress for investors, with daily fluctuations and concerns over GBTC sales limits exceeding 500,000 BTC. Coinbase is actively transferring assets between wallets to manage the situation.
Bitcoin’s price fell by approximately 20% following the SEC’s reluctant and seemingly manipulative ETF approval, with altcoins experiencing even greater declines. On January 23rd, Bitcoin approached $38,000, but buyers managed to step in at the right moment. The market is now looking for factors that could sustain optimism.
The sell-off of Grayscale Bitcoin Trust (GBTC) shares has been linked to a $5 billion single transaction, catching the market off guard. However, the outflow from GBTC is slowing down due to its escape from negative premium, profitability, and the availability of cheaper alternatives, including a $1 billion asset from Alameda.
A consecutive two-day drop in GBTC outflows suggests a slowing trend that could boost market optimism. Upcoming data will be crucial for market sentiment.
Data from Glassnode indicates an increase in activity among Bitcoin whales, with the number of investors holding over 1,000 BTC rising from 1,481 to 1,533 between January 11th and 25th. This suggests strong belief in a recovery above $50,000. Technically, the RSI is moving away from the oversold region, indicating a potential price increase as demand rises. If BTC can sustain above $40,400, a rapid recovery to $44,700 is possible, potentially triggered by upcoming PCE data if it falls below expectations.