Bitcoin‘s price experienced a decline following the anticipated launch of a spot Bitcoin ETF, but recently showed signs of recovery. Analysts are divided on whether the bottom has been reached, with Bitcoin’s price stabilizing at levels similar to the previous week, in tandem with the S&P 500 Index hitting record highs.
Market Predictions and Risks
Analyst CrediBULL Crypto predicted a rebound in Bitcoin’s price to the $40,000 mark after a dip to $38,000. However, he cautioned of a potential further drop to $37,000 or below $36,000. The market is uncertain if the downtrend that began with the SEC’s approval of the spot Bitcoin ETF will persist.
Recent price surges in Bitcoin have drawn attention, with the potential for increased selling pressure. Yet, a fall below $40,000 is considered unlikely by some, and the bottom may have already been reached, according to one analyst’s interpretation.
Grayscale Bitcoin ETF Outflows
CrediBULL also noted that despite significant outflows from the Grayscale Bitcoin ETF, the overall performance of Bitcoin ETFs remains positive, with more inflows being recorded. Grayscale’s Bitcoin spot ETF experienced a record single-day net outflow of $671 million on January 26, 2024.
The cumulative outflows from Grayscale’s ETFs have reached $5.46 billion, with the firm still holding assets worth $19.99 billion. Meanwhile, Bitcoin’s trading price hovered around $41,700, with a slight increase in daily trading volume.