Why Is Bitcoin Price Up Above $43,000 Today?


Bitcoin is back above $43,000 just days after making a swift recovery from below $40,000 to $42,000. This trend reversal is believed to be due to a number of recent developments that have painted a bullish narrative for the flagship crypto token

The Grayscale Effect Is Wearing Off

Bloomberg analyst James Seyffart recently highlighted how BlackRock’s Spot Bitcoin ETF, IBIT, went toe-to-toe with Grayscale’s GBTC on Day 12 of trading in terms of trading volume. This happened to be the closest that IBIT or any Spot Bitcoin ETF had come close to GBTC, which holds the “liquidity crown.”

How To Get Free Crypto  

This represents a positive development for Bitcoin’s price since IBIT’s volume, more of inflows, is able to suppress GBTC’s volume, which has been majorly outflows. The outflows recorded by GBTC following its Spot Bitcoin ETF conversion had partly contributed to the flagship crypto token dropping below $40,000.

However, GBTC investors seem to be cooling on the profit-taking that had overwhelmed the fund as it has now seen a reduced outflow for the fifth consecutive day. BitMEX research revealed in an X (formerly Twitter) post that GBTC had seen an outflow of $192 million on January 29. 

That figure also represented GBTC’s lowest daily outflow yet and the first time it was seeing a daily outflow below $200 million. This recent trend of reduced outflows has evidently provided some form of relief to the Bitcoin market, seeing that Grayscale’s selling pressure has subsided. 

Meanwhile, the Bitcoin bulls also contributed to ensuring that Bitcoin didn’t stay down for too long. Data from IntoTheBlock showed that Bitcoin whales have increased their BTC holdings by 76,000 BTC since the start of this year. That suggests that there was a reasonable demand for the crypto token even when Grayscale continued to offload its BTC holdings. 

Coinbase Banner  

BTC price holding strong above $43,000 | Source: BTCUSD on Tradingview.com

Other Factors Behind The Bitcoin Recovery 

NewsBTC recently reported how macroeconomic factors like the latest inflation data and the US debt being at an all-time high had contributed to Bitcoin’s recovery to $42,000. These factors are still playing out in Bitcoin’s current momentum, which has seen it rise above $43,000

Moreover, the Federal Open Market Committee (FOMC) meeting is scheduled for January 30 and 31, and the CME FedWatch Tool predicts that there is a 97.9% chance that interest rates remain the same. Rates holding steady, rather than a hike, are good for the market. 

This also provides a plausible explanation for the recent surge in Bitcoin’s price since investors are already positioning themselves in anticipation of the likely outcome of the Feds meeting. Another event these investors will be positioning themselves ahead for is the Bitcoin Halving.

Market intelligence platform Santiment recently revealed that Bitcoin’s supply on exchanges has continued to reduce, with BTC holders moving their tokens to cold storage. This move could well be in anticipation of the likely gains that Bitcoin is expected to see once the Halving event takes place. 

FreeBitcoin Banner  

Chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Go to Source
Author: Scott Matherson


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.