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Bitcoin showing signs of weakness as Grayscale outflows persist

Published 26/01/2024, 07:19 pm
© Reuters.  Bitcoin showing signs of weakness as Grayscale outflows persist
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Bitcoin (BTC) closed below $40,000 on Thursday, marking the third such instance this week, in a sign of stickiness for the post-ETF sell-the-news situation.

The BTC/USD pair finished the session 0.3% lower at $39,960 and has remained relatively untouched today.

Bitcoin has been under persistent selling pressure ever since the US securities watchdog gave the go-ahead for 11 bitcoin-linked exchange-traded funds to be listed on the New York stock market.

Though a momentous occasion for institutional bitcoin investors, the benchmark cryptocurrency’s price continues to be hit by post-approval profit-taking among some major holders.

The largest of the newly listed funds, Grayscale Bitcoin Trust (GBTC), continues to see large-scale outflows totalling nearly $4.4 billion at the latest count, though healthy inflows into the likes of BlackRock’s iShares Bitcoin Trust and Fidelity’s product have managed to offset this, for now.

As of Thursday, total inflows across all products totalled $824.4 million, with total trading volumes exceeding $21 billion.

According to Bloomberg’s James Seyffart, yesterday was the biggest day for outflow yet to the tune of $158 million, though this data is heavily skewed by GBTC’s outflows.

Ethereum (ETH)’s losses are beginning to pile up, with over 10% scrubbed from the second-largest cryptocurrency in the past week compared to bitcoin’s 2.5%.

At the time of writing, the ETH/USD pair was swapping for $2,208.

Elsewhere in the blue-chip altcoin space, Solana (SOL), Ripple (XRP), BNB, Cardano (ADA) and Avalanche (AVAX) are all down in the mid single digits on a week-on-week basis, while Dogecoin (DOGE) has beaten the market by adding 0.,3%.

Global cryptocurrency market capitalisation currently stands at $1.55 trillion, with bitcoin dominance at 51.9%.

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