Bitcoin (BTC) fell back under $40,000 after the Jan. 25 Wall Street open as BTC price action tested “pretty significant” support.
ETF volumes impress despite worst daily outflows
Data from Cointelegraph Markets Pro and TradingView showed another lackluster start to the United States session, with BTC/USD failing to claw back lost ground for long.
Bitcoin faced a familiar cocktail of downside triggers, these focused on the spot exchange-traded funds (ETFs), now into their third trading week.
Outflows from the Grayscale Bitcoin Trust (GBTC) were around 13,000 BTC for the day, this marginally lower than previously.
“The upside is that eventually this will slow down and run out but it will take some more weeks until the majority is gone,” popular trader Daan Crypto Trades wrote in part of a reaction on X (formerly Twitter).
Referencing figures from Bloomberg Intelligence analyst James Seyffart, he added that Jan. 24 had seen the largest single-day net outflows for the ETFs so far — nearly $160 million.
Today’s #Bitcoin Sent to out by $GBTC/Grayscale comes out to be ~13K $BTC or ~520$M worth.
Decrease from yesterday but overall still high.
The upside is that eventually this will slow down and run out but it will take some more weeks until the majority is gone.
Other ETFs… pic.twitter.com/PeAYDTtQuu
— Daan Crypto Trades (@DaanCrypto) January 25, 2024
“The good news: GBTC outflows trending down. The bad news: so are the Nine’s,” fellow Bloomberg analyst Eric Balchunas continued.
“That leaves us with TOTAL ROLLING NET FLOWS of +$824m. Also ARKB and BITB crossing half a billion is remarkable. For any normal launch in first month that’s considered blockbuster-level success.”
“Significant” Binance bids amass below spot price
Analyzing the state of the BTC/USDT order book on largest global exchange Binance, trading resource Material Indicators spied what could potentially rescue bulls from a deeper fall.
Related: 3 reasons why Bitcoin hitting $38.5K marked the ‘ETF dip’
Bid liquidity in an area directly below spot price, it revealed, was some of the largest observed in the past three years.
“When we have big blocks of liquidity close to price then price tends either to revert — and this works in both directions, same thing with resistance — and sometimes it will consolidate here,” co-founder Keith Alan explained in a dedicated video on X.
Alan added that while the ETFs were creating “noise,” the scale of the liquidity could not be underestimated.
“Nonetheless, we’re looking at a significant block of bid liquidity right under price,” he said.
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