Bitcoin Price Could Hit New All-Time High Before Halving, Here’s Why
January 30 2024 - 2:30PM
NEWSBTC
The Bitcoin market is currently experiencing a turning point,
largely driven by recent trends in Bitcoin exchange-traded funds
(ETFs). Yesterday, Bitcoin’s price rose above $43,000, a movement
closely tied to changing dynamics in ETF inflows and outflows,
particularly involving the Grayscale Bitcoin Trust (GBTC). On
January 29, (Bitcoin ETF Day 12), a notable shift occurred. The
Bitcoin spot ETFs witnessed a substantial net inflow of US$255
million, while Grayscale’s GBTC experienced a significant net
outflow of $191 million. The other nine ETFs, led by Fidelity and
BlackRock, saw a combined net inflow of $446 million, making it the
third-highest inflow day for Bitcoin ETFs. New All-Time High Until
Bitcoin Halving? This scenario of high inflows and reduced outflows
from Grayscale’s GBTC presents an intriguing change from previous
days, where GBTC outflows dominated and weighed heavily on the
market sentiment. Crypto analyst @WhalePanda, who’s part of the
“Magical Crypto Friends” YouTube channels (along with Samson Mow,
Charlie Lee, and Riccardo Spagni), commented on this development,
stating, “Net inflow of $250 million in a day is crazy. That’s 5800
Bitcoin being removed from the market in just one day.” He
highlighted the significance of this volume, especially when
compared to the daily Bitcoin mining rate of 900 BTC. MicroStrategy
bought $615 million BTC between November 30 and December 26.
Related Reading: Glassnode Co-Founder Warns: Bitcoin’s Surge Could
Trigger A $1 Billion Liquidation Event – Here’s Why While
WhalePanda acknowledged that inflows will slow down one day, he
expects this to happen later on. “The increased price is driving
more exposure, leading to more inflows, which in turn pushes the
price even higher. This is a classic example of the bull cycle
flywheel mechanics at play, even before the halving,” he remarked.
The renowned crypto expert further elaborated that “the amount of
Bitcoin float will significantly drop over the next couple of days
and once the price starts moving with limited supply left… Things
can go crazy. No, not $1 million crazy. Crazy for me is breaking
ATH before halving.” Related Reading: This Banking Giant Files For
Bitcoin ETF Application In Hong Kong In a separate post on X,
@WhalePanda expressed his outlook for the week, “This is going to
be a big week for #Bitcoin. With GBTC outflows decreasing and a
strong inflow day last Friday, we might be seeing the beginning of
a new trend.” He emphasized the potential of this momentum to
become a self-fulfilling prophecy, driving Bitcoin’s price higher.
Spot BTC ETFs Remain The Focus Thomas Fahrer, co-founder of Apollo
Sats, added context to these massive spot BTC figures, noting, “The
9 New ETFs hold more BTC than Tether, Tesla, Block, and all of the
Public Miners combined. Soon they will surpass MSTR, and later even
GBTC.” Alex Thorn, head of research at Galaxy, commented on the
potential implications for BTC’s price trajectory, especially in
relation to ETH: “With Grayscale outflows appearing to slow down
and other Bitcoin ETF flows remaining positive, I’m curious about
the future direction of the ETHBTC cross. A lower trajectory seems
like the path of least resistance in the near term.” with grayscale
outflows seeming to abate and other #bitcoin etf flows now
appearing holding positive, i’m again wondering where the ETHBTC
cross is headed. lower again feels like the path of least
resistance near-term pic.twitter.com/DVPi1pdWP0 — Alex Thorn
(@intangiblecoins) January 30, 2024 This confluence of ETF inflows,
decreasing outflows from Grayscale, and the anticipation of the
upcoming Bitcoin halving are creating a unique bullish market
environment. However, at press time, BTC is trading below a key
resistance at $43,444. Featured image created with DALL·E, chart
from TradingView.com
Gala (COIN:GALAUSD)
Historical Stock Chart
From May 2024 to Jun 2024
Gala (COIN:GALAUSD)
Historical Stock Chart
From Jun 2023 to Jun 2024