Market Response to Spot Bitcoin ETF
After a prolonged anticipation, the launch of the spot Bitcoin ETF led to an initial decline in Bitcoin’s price. However, recent movements have shown signs of recovery. Despite this, some analysts believe that the correction in Bitcoin’s price has already concluded and the bottom has been reached. The price of Bitcoin remains at the same level as the previous week, possibly influenced by the S&P 500 Index reaching all-time highs.
Analysts’ Perspectives on Bitcoin’s Future
Prominent analyst CrediBULL Crypto had expected Bitcoin’s price to bounce back to the $40,000 level after a dip to $38,000. Despite this optimism, there was also a warning of a potential drop to around $37,000. The ongoing debate centers on whether the downturn following the approval of the spot Bitcoin ETF by the SEC will persist.
The last couple of days have continued to attract attention, with a notable jump in Bitcoin’s price potentially leading to significant selling pressure. Yet, a drop below $40,000 seems unlikely. According to some analysts, Bitcoin may have already passed its lowest point.
Despite outflows in the Grayscale Bitcoin ETF, CrediBULL notes that the overall performance of Bitcoin ETFs appears positive due to increased inflows. As of January 26, 2024, the Grayscale Bitcoin spot ETF experienced its largest single-day net outflow, valued at $671 million.
The cumulative net outflows for Grayscale’s ETFs reached $5.46 billion, while the firm still holds assets worth $19.99 billion. Meanwhile, Bitcoin’s price has seen an increase of just over 2%, trading at $41,700, with daily trading volume rising by 3% to over $21.5 billion.