Bitcoin drops below $41,000:
- Bitcoin falls below the $41,000 mark for the first time since December.
- Cash-settled ETFs record significant activity, with exchanges totaling $13.7 billion.
- Analysts anticipate further downward pressure on the price of Bitcoin in the coming weeks.
Bitcoin (BTC) dump below $41,000
The price of Bitcoin has just dipped below $41,000, a level it hasn’t reached since last December. Indeed, on January 18, 2024, the price of Bitcoin dropped by about 5% in 24 hours, reaching $40,700 around 9 PM in France. Since the beginning of the week, the market leader has seen its value decrease by about 6.5%.
This decline comes at a time when many analysts, including some from JPMorgan, have expressed concerns about potential bearish pressure on Bitcoin in the coming weeks. This pressure could be due to investor profit-taking in the context of Grayscale’s cash-settled ETF, stemming from the conversion of GBTC into an exchange-traded fund.
This activity has coincided with increasing volatility in the Bitcoin market. In the past hour, the market has seen $28 million in long liquidations and $4 million in short liquidations, according to Coinglass.
Nearly $14 billion in inflows in 5 days for ETFs
Cash-settled Bitcoin ETFs completed their fifth day of trading with a cumulative transaction volume of $13.7 billion.
Just on January 18, $1.9 billion was exchanged, with $976 million coming from the Grayscale fund, representing approximately 50% of the volume since the start of trading for these new products the previous week.
BlackRock and Fidelity funds also dominate the market with over $710 million and $524 million in inflows respectively.
